From Nasdaq: 2024-07-29 12:54:00

Amazon is set to report Q2 2024 results on Aug 1, expecting net sales between $144 billion and $149 billion, with a 7-11% growth from the prior year. Earnings are estimated at $1.03 per share, with an impressive history of beating estimates. Strong Prime membership and AWS performance are key drivers.

The company with a proven track record of earnings surprises is poised for another beat. With an Earnings ESP of +4.58% and Zacks Rank #2, Amazon is expected to outperform expectations. Key factors driving growth include solid Prime momentum, expanding grocery services, and strong relationships with third-party sellers.

Amazon’s online retail sales are expected to get a boost from Prime membership benefits and the growing grocery business. The company’s physical store sales and third-party seller generated sales are also anticipated to grow. Prime Video’s momentum and Alexa features are likely to contribute to subscription service sales growth in Q2. AWS segment is expected to benefit from expanding cloud services and generative AI technology.

Amazon’s smart device portfolio, including Fire products, Echo smart speakers, and eero WiFi systems, is anticipated to drive financial performance in Q2. The company’s strong price performance year-to-date, outperforming industry peers, reflects investor confidence. While trading at a premium, Amazon’s strong growth prospects in e-commerce and cloud justify the valuation. Staying on top of upcoming earnings announcements is key for investors.



Read more at Nasdaq: Is Amazon (AMZN) Stock Worth Buying Ahead of Q2 Earnings?