Welcome to Extreme Investor Network, where we go above and beyond to bring you the latest and most valuable insights in the world of finance. Today, we’re diving into the upcoming earnings report from Amazon, one of the tech giants that investors can’t get enough of.
Amazon is scheduled to report its first-quarter earnings after the closing bell on Tuesday, and Wall Street is buzzing with anticipation. The company has already seen impressive performance in 2024, with shares up 20% year-to-date. But what lies ahead for this eCommerce powerhouse?
One key focus for investors is Amazon’s artificial intelligence initiatives. The company is at the forefront of the AI arms race, with custom generative AI chips in development. This strategic position could be a game-changer for Amazon in the coming years, according to Needham strategists.
But it’s not just AI that investors are watching. Key areas like Amazon Web Services and advertising revenue will also be under scrutiny. As consumer spending slows, these segments could face challenges. So, what can we expect from Amazon’s upcoming earnings report?
Bank of America analysts are optimistic, expecting healthy growth driven by positive progress in retail margins, AWS, and ad revenue. Wells Fargo analysts also see healthy trends for the first quarter, with changes to the Fulfillment by Amazon program expected to drive incremental operating income.
Goldman Sachs is cautious on eCommerce stocks overall but sees Amazon as a top pick for the first quarter due to resilient retail demand and expected growth in AWS and ad revenue. Meanwhile, Needham analysts predict that Amazon will be among the top winners of the AI race, with strong performance across multiple profit metrics.
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