From Nasdaq: 2024-04-29 09:46:21

The Q1 earnings season is heating up with Amazon and Apple releasing their quarterly reports. Alphabets’ value hit the $2 trillion market cap club, dispelling fears about AI initiatives. Analysts expect Amazon’s Q1 revenues to rise 11.9% YoY to $142.5 billion, with an operating income estimate of $8 billion to $12 billion. Netflix plunged after its earnings release, while Tesla soared despite missing expectations.

Amazon may cross the $2 trillion market cap milestone after its Q1 earnings release. The company’s focus on efficiency has boosted growth in its bottom line, exceeding revenue growth. JPMorgan reiterated Amazon as its best idea for 2024, with expectations of strong store growth and North American profit margin expansion. Several other brokerages have also highlighted Amazon as a top pick for 2024.

Amazon’s long-term forecast appears bullish, with stabilized growth in e-commerce and AWS business. Emerging growth drivers like Amazon Business, pharmacy business, and ad business, coupled with generative AI initiatives, are expected to drive top and bottom-line growth. With a reasonable NTM price-to-earnings multiple and strong growth potential, hitting a $2 trillion market cap seems likely after the Q1 report.



Read more at Nasdaq: Can AMZN Stock Join the $2 Trillion Club After Amazon’s Q2 Earnings?