E-commerce giant Amazon (NASDAQ:) is set to report results after the market closes on Thursday. Street expects EPS of $0.17 on revenue of $145.7 billion.
Amazon’s stock has performed strongly in recent days after breaking through a key technical resistance near $90. As a result, the stock is up more than 21% year-to-date (YTD) after reaching its lowest level since March 2019.
focus on AhWS After Azure slowdown
After Microsoft (NASDAQ:) said it expects Azure’s growth to slow in the coming quarters, investors could focus on growth in AWS.
Microsoft Chief Financial Officer Amy Hood said on a conference call:
Microsoft reported revenue for its Intelligent Cloud business segment, which hosts Azure, surged 18% to $21.51 billion, beating the consensus $21.44 billion. Specifically, revenue from Azure and other cloud services increased by 31%.
For the previous quarter, Amazon reported $20.5 billion in AWS revenue, missing the $21.1 billion consensus after recording the slowest revenue growth since 2014, when Amazon began picking unit results.
What do analysts expect from Amazon?
We have some fresh comments from Amazon analysts ahead of Thursday’s earnings report.
Bank of America analyst: “Currently forecast rev./GAAP Profit of $146.9 billion/$3.0 billion and Street of $145.7 billion/$2.7 billion. Biggest risk following MSFT’s Azure guide thinks it’s a comment on AWS trends in Q1, but MSFT’s share price reaction to its Q1 outlook eased concerns and AWS made Q1 comps easier. We believe retail can outperform our cautious Q4 guide as we gain share in the US, but margins are at risk.”
Credit Suisse analyst (raises PT from $142 to $171): “We maintain our Outperform rating on the following grounds: 1) the e-commerce segment has a larger infrastructure; 2) faster-than-expected growth in FCF relative to the faster advertising segment; As such, it is probably a gentler deceleration path.”
Barclays analyst (cuts PT to $130 from previous $140): Benefit from a promotion-heavy environment for buying household essentials. ”
Amazon shares closed at $102.24 on Friday after gaining 5.13% last week.