Amazon (AMZN) will report its third-quarter earnings after the bell on Thursday, with the company’s cloud business in the spotlight.Thank you for reading this post, don't forget to subscribe!
This week was with mixed cloudy results. On Tuesday, Microsoft (MSFT) reported better-than-expected growth in its Azure cloud business, while Alphabet’s (GOOG, GOOGL) cloud growth data disappointed. Amazon Web Services is next up, under pressure to show some numbers.
“AWS’s growth is the most talked about issue with investors,” JPMorgan’s Doug Anmuth wrote on October 19. “We expect momentum in AWS.” [the second half of 2023],
Anmuth said he expects to monetize Amazon’s generic AI efforts — such as Bedrock, which helps other companies build large language models — “more meaningfully in 2024” and second to retail growth. Year to accelerate in the half year.
“We think investor sentiment for Amazon is mixed heading into 3Q results as investors continue to debate: one, the trajectory of AWS growth and the company’s overall AI strategy; two, regulatory challenges and the outcome of the FTC lawsuit filed last month; three , potential retail margin pressure due to rising oil prices; and fourth, ongoing competition from Chinese entrants. [like] Teemu, Shein and TikTok Shop,” wrote Scott DeWitt, ecommerce equity research analyst at Wedbush.
income has collapsed
Here are the key figures, compiled by Bloomberg, that Wall Street is expecting to see from Amazon:
gross sales: $141.56 billion expected
AWS Net Sales: Expectation of 23.13 billion dollars
earnings per share: $0.58 expected
operating margin: 5.46% expected
Q4 Net Sales: $166.57 billion expected
Currently, analysts’ recommendations for Amazon are 63 buys, two holds and zero sells.
Bipedal robots move containers in the test stage during a demonstration at Amazon’s “Delivering the Future” event. (Jason Redmond/AFP/Getty Images)
Amazon shareholders may soon see an upside boom. The company’s operating margin is expanding — rising 32% between Q1 and Q2 — indicating that Amazon’s post-pandemic efficiency efforts have been effective.
“We analyzed ten years of historical data and identified all periods when Amazon’s operating margin increased or decreased on a two or more consecutive quarter basis,” DeWitt wrote. “We then compared share price returns during those periods, and found that Amazon shares rose an average of 84% when operating margins were rising, while rising only 1% when operating margins were declining. “
eli garfinkel Is a senior tech reporter at Yahoo Finance. Follow him on X, formerly Twitter, @agarfinks and on Linkedin,
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