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Technology actions have peaked in recent weeks and led to market recovery as a total after the pandemic collapsed in March. Amazon’s shares have risen by more than 63% since the beginning of the year, while the S.P.500 is rough over the same period.
Adjusted earnings consistent with the stock: $5.46 expected
Revenue: $81.22 billion
Amazon, along with other big names of the generation such as Facebook and Apple, have been strong in the face of coronavirus pandemic-induced closures that have kept consumers at home to stem the spread of COVID-19. Amazon benefited because other people flocked to buy food online when they closed outlets.
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Amazon’s effects come a day after CEO Jeff Bezos testified at a historic congressional hearing about the problems of generation festivals.
This is what 4 Wall Street analysts talk about before the company’s effects are published.
Target price: $3800
Rating: Buy
“For AMZN, simple comparisons in this quarter for the retail industry and favorable winds of the company’s pandemic position for strong sales expansion,” Thill said. “Our overall sales estimate for the current quarter represents a year-on-year expansion of 28% and is 1% above consensus, thanks to the acceleration of expansion in the critical retail industry.
“We are also 11% above the operating profit of the second quarter consensus, which is 27% below the top forecast despite AMZN’s old history of exceeding forecasts and its conservative outlook of $4 billion in prices basically similar to COVID.”
Target price: $3300
“E-commerce has experienced significant positive winds from the existing COVID-19 pandemic, and Amazon is one of the biggest beneficiaries of this trend,” analysts led by Maria Ripps said in a note Monday.
Canaccord expects an overall expansion of profits of around 27% during the year, “since building a pandemic-like demand leads to an acceleration of the online store’s expansion to 28% a/y.” You believe that AWS profits accrue by 34% year-on-year, as the demand for cloud computing remains strong.
“We expect the consolidated operating margin to be contracted through approximately 400 foundation issues over a year, as the control noted that the Company plans to reinvest almost all of its second quarter revenue operating source into COVID-19 projects to ensure the satisfaction of visitors and Ripps employees said, “We are also seeing a slowdown in expanding other revenue to 35% (compared to 44% in the first quarter) , as economic uncertainty has a negative effect on virtual advertising budgets in the short term.”
Target price: $3700
Rating: beat
“We expect strong effects in 2.20 with Rev. Op. Inc. above the high-end range,” analysts wrote through John Blackledge on a July 130 note.
Investors will focus on the “continued acceleration of e-commerce,” according to the note, “that we will continue to be physically powerful in Q2, especially as the United States faces staggered and infrequently interrupted reopenings that continued in July as COVID-19 instances increase. Matrix “
“We also expect investors to look beyond the quarter’s investments in COVID-19-related spending, which AMZN estimates can succeed at $4 billion, adding staff, maximum salaries, protective equipment, testing, and pandemic aid efforts.”
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Rating: Buy
“Given the quarter with a sharp increase in demand, we expect an increase in retail revenue, but a tension in gross margin due to substitution in the combination of categories and minus the combination of 3P, offset in part by higher advertising revenue,” Post said.
“After Amazon gave the impression of curbing demand on the way out of the first quarter (including spending less on marketing, cutting off item promotions on Amazon’s Internet sites, and extending delivery times), we thought operations and capacity are now much more standardized, suggesting higher revenues, as capacity expectations were likely conservative.” Array said.
“In the home environment, Amazon’s profit is higher than ever, resulting in an accumulation of Prime members, potentially a positive point this quarter after mgmt. I didn’t make any disclosures on Prime charts in the first quarter.”