Before the first-quarter earnings report, J.P. Morgan analysts expressed optimism about Amazon (AMZN). According to analyst Doug Anmuth, Amazon remains the internet sector’s best bet, even though the current macro environment is affecting spending.
While first-quarter e-commerce trends are still moderate, the growth rate has improved from the previous quarter, but is expected to slow down throughout the period.Despite the current situation, Anmuth believes that Amazon and other e-commerce retailers will continue to gain market share by tapping into previously unexplored areas, such as grocery, apparel, accessories, and furniture. He is also confident that Amazon will be able to improve its operating margins by 2023 by making strides in retail and cost control.
Amazon’s shares rose by 3.3% to $107.22 on Friday, despite Anmuth maintaining his Overweight rating and $135 price target for the company. The upcoming first-quarter earnings report on April 27, after the market closes, is expected to show adjusted earnings of 23 cents a share on sales of $124.6 billion according to analysts surveyed by FactSet. Investors will be closely monitoring Amazon Web Services’ performance.
In his annual shareholder letter published on April 13, CEO Andy Jassy stated that the cloud computing unit is facing short-term headwinds as companies are more cautious in spending due to challenging macroeconomic conditions. AWS is the main contributor to Amazon’s annual operating profit. Piper Sandler’s analyst, Thomas Champion, noted that AWS has a 50% market share and will perform even better in a challenging spending environment. He maintained an Overweight rating and $123 price target on the stock.
This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.
Featured CoursesRecent news
CoreWeave Stock Sinks 6.4%: Is Its Debt Killing AI Growth?
CoreWeave delivered a strong top-line quarter. The guidance that followed sent the stock sharply lower. Shares fell 6.4% in premarket trading Friday after the AI cloud company posted first-quarter revenue that beat expectations but issued a second-quarter profit outlook that fell well short of what Wall Street was looking for. Here is what the numbers […]
Cloudflare Stock Sinks 18% on 1,100 Layoffs Despite Earnings Beat
Cloudflare just delivered one of its strongest quarters on record. Investors sold the stock anyway. Shares dropped roughly 18% in extended trading Thursday after the company announced it was cutting approximately 1,100 employees, about 20% of its global workforce, even as first-quarter results cleared Wall Street expectations on every major metric. Here is what the […]
Is Nvidia’s IREN Deal Genius or a Red Flag?
Nvidia’s investment playbook is drawing scrutiny and pushing its stock higher at the same time. Shares climbed 1.2% in premarket trading Friday after the chipmaker announced an AI infrastructure partnership with IREN. Critics call the deal circular. Analysts call it smart. The agreement puts five gigawatts of AI infrastructure across IREN’s data centers. Nvidia gets […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.