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Amazon.com, Inc. (AMZN), headquartered in Seattle, Washington, is the world's largest online retailer and marketplace. The company engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores. With a market cap of $1.8 trillion, its products include books, music, computers, electronics, and numerous other products. Amazon offers personalized shopping services, web-based credit card payment, and direct shipping to customers through its cloud platform. The e-commerce giant is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Thursday, May 1.
Ahead of the event, analysts expect AMZN to report a profit of $1.37 per share on a diluted basis, up 21.2% from $1.13 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect AMZN to report EPS of $6.33, up 14.5% from $5.53 in fiscal 2024. Its EPS is expected to rise 14.7% year over year to $7.26 in fiscal 2026.
AMZN stock has underperformed the S&P 500’s ($SPX) 5.4% gains over the past 52 weeks, with shares down 4.8% during this period. Similarly, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 7.6% gains over the same time frame.
Amazon's underperformance is due to increased regulatory scrutiny, fierce competition, and macroeconomic challenges like tariffs on Chinese products. The tariffs on Chinese imports could significantly impact Amazon's third-party marketplace business, as China-based sellers account for over 50% of sales. AWS may also face higher costs from tariffs, potentially leading to a slowdown in IT spending.
On Feb. 6, AMZN shares closed up more than 1% after reporting its Q4 results. Its revenue stood at $187.8 billion, up 10.5% year over year. The company’s EPS increased 86% year over year to $1.86.
Analysts’ consensus opinion on AMZN stock is bullish, with a “Strong Buy” rating overall. Out of 53 analysts covering the stock, 48 advise a “Strong Buy” rating, four suggest a “Moderate Buy,” and one gives a “Hold.” AMZN’s average analyst price target is $254.15, indicating an ambitious potential upside of 47.2% from the current levels.
