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With a market cap of $2.3 trillion, Amazon.com, Inc. (AMZN) is a global leader in e-commerce, cloud computing, and digital services, renowned for its customer-centric approach and innovative technologies. With operations spanning retail, media, and cloud infrastructure, it serves diverse customer segments, including consumers, sellers, developers, and advertisers, through its extensive product and service offerings. The Seattle, Washington-based company is expected to announce its fiscal Q4 earnings results on Thursday, Feb. 6.
Ahead of the event, analysts expect the company to report a profit of $1.53 per share, up 51.5% from $1.01 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the most recent quarter, AMZN exceeded the consensus EPS estimates by a 25.4% margin.
For fiscal 2024, analysts expect AMZN to report an EPS of $5.38, up 89.4% from $2.84 in fiscal 2023.
Over the past 52 weeks, AMZN has surged 44.5%, outperforming both the S&P 500 Index's ($SPX) 24.4% rise and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 30.7% increase over the same period.
Shares of AMZN soared 6.2% following its Q3 earnings release on Oct. 31 due to its robust financial performance that exceeded expectations. The company reported EPS of $1.43, up 52.1% year-over-year, beating the consensus estimate, driven by strong revenue growth of 11% to $158.8 billion, surpassing guidance and estimates. Amazon Web Services (AWS) maintained solid momentum with 19.1% revenue growth, highlighting its growing role in generative AI and partnerships, while advertising revenues surged 19%, reflecting the strength of its high-margin businesses. Furthermore, operating income jumped 55.6% to $17.4 billion, with improvements across all segments and record-breaking results from Prime Big Deal Days further boosting investor confidence.
Analysts' consensus view on AMZN stock is bullish, with an overall "Strong Buy" rating. Among 49 analysts covering the stock, 45 recommend a "Strong Buy," three suggest a "Moderate Buy," and one gives a "Hold" rating. As of writing, AMZN is trading below the average analyst price target of $249.65.
