Will Amazon Surprise Again? Quarterly Earnings After Market Close! 🚀

Amazon (AMZN.US) shares are trading 0.34% higher in the pre-market trading ahead of the quarterly earnings report after today's market close. Investors are turning their attention to Amazon's cloud computing unit, Amazon Web Services (AWS), after competitors reported slightly slower growth. Though AWS has experienced a slowdown, Amazon's other divisions are expected to become catalysts for growth in 2023, particularly as efficiencies take effect and inflation decreases. Amazon's revenue is expected to increase by 9%, marking a single-digit rise for seven out of the last eight quarters. Advertising sales might be higher, in line with the digital advertising industry's robust performance.

Financial Metrics:

• Q2 Forecasts:

  • Net sales: $131.63 billion
    • Online stores net sales: $52.45 billion
    • Physical Stores net sales: $4.96 billion
    • Third-Party Seller Services net sales: $31.2 billion
    • Subscription Services net sales: $9.79 billion
    • AWS net sales: $21.71 billion
    • North America net sales: $79.68 billion
    • International net sales: $29.25 billion
  • Third-party seller services net sales excluding F/X: +15%
  • Subscription services net sales excluding F/X: +14.5%
  • AWS net sales excluding F/X: +9.48%
  • EPS consensus: $0.34 versus $0.31 previously and $0.39 next quarter

• Q3 Forecasts:

  • Net sales: $138.3 billion
  • Operating income: $5.41 billion

Looking at the financial dashboard, it's worth paying attention to the increase in employment. The company has practically doubled the number of employees between 2019-2021, increasing total employment by 0.8m to 1.6m employees! Looking historically at the PE valuation, the company is currently relatively highly valued, which indicates a high premium and hopes for growth in the coming quarters.
Overall positive outlook, reflected in 60 buy ratings, 3 hold ratings, and 1 sell rating, with an average price target indicating a 17% upside.

Analysts remain positively inclined towards revenue and EBITDA growth for Amazon in the perspective of 2024. Revenues are expected to increase by +20% compared to the revenues for the last 12 months.