Amazon's Q3 2024 earnings preview: sales growth and AI investment insight
Explore expectations for Amazon's Q3 2024 earnings, focusing on anticipated sales growth in e-commerce, cloud, and advertising sectors, alongside the impact of AI advancements on financial performance.
Amazon Q3 earnings date
Amazon will reveal its Q3 2024 financial results on Friday, 1 November at 7.00am (AEDT).
Amazon Q3 expectations
Investors are generally optimistic about Amazon's Q3 performance, expecting solid growth in its core e-commerce business and strong expansion in its cloud and advertising divisions.
- Net sales: expected to be between $154.0 billion and $158.5 billion, marking an increase of 8% to 11% compared to the same quarter last year
- Operating income: projected to range from $11.5 billion to $15.0 billion, an increase from $11.2 billion in Q3 2023.
Q3 2024 earnings forecast: EPS and revenue growth expectations
Amazon Q3 key areas to watch
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E-commerce Sales
Amazon's core e-commerce business continues to be a significant revenue driver. In the past quarter, total sales from North America and international markets accounted for 82% of the company's overall revenue. Investors will be eager to assess how the company's sales have performed amid economic uncertainties and heightened competition from traditional retailers and other online marketplaces.
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Cloud Computing
Amazon Web Services (AWS) is the world's leading cloud computing platform and the fastest-growing segment within the company. In the past quarter, AWS sales increased by 19% year-over-year, capturing a 31% market share, compared to 25% by Microsoft Azure and 11% for Google Cloud. While Amazon's dominant position in the cloud space appears solid for now, investors will be watching for signs of sustained growth amid intense competition from these two tech giants.
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Advertising
Amazon's advertising business has seen rapid growth in recent years. Investors will be eager for updates on the company's advertising revenue and how effectively it can leverage synergies to capitalise on its extensive e-commerce customer base.
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AI advancements
Like other tech giants, Amazon has made significant investments in AI research and development. In recent quarters, the company has introduced a range of AI-powered features across its product lines, including AWS, Alexa, Amazon Go, and Amazon Prime Video. These features demonstrate Amazon's commitment to leveraging AI to enhance user experiences and drive business growth.
In addition to its consumer-facing products, Amazon has integrated AI into its supply chain and logistics operations to enhance efficiency, reduce costs, and improve customer satisfaction. Investors and industry observers will be eager to learn about the company's roadmap for future AI initiatives and the expected returns.
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Amazon share price
Despite Amazon's share price increasing by 44% over the past 12 months, analysts remain optimistic about the stock's potential for further growth. The average one-year price target is $221.24, representing a 19% increase from the closing price on 23 October ($184.71). According to TradingView, 55 out of 67 analysts have rated the stock as a "strong buy", with no analysts recommending a sell in the past three months.
Analyst price target and projection chart
Amazon's multi-month trading range and support/resistance levels
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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