Amazon Q3 earnings preview: what to expect?
Amazon is set to release its Q3 2024 financial results on October 31, following the close of the U.S. market, providing a closer look into key areas such as e-commerce, cloud computing, and advertising.
Amazon Q3 earnings date:
Amazon.com Inc -Gerwill reveal its Q3 2024 financial results on October 31 at 2 p.m. PT/5 p.m. ET.
Amazon Q3 earnings expectation
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.
Here is the forecast for the key financial metric:
Additionally, according to Amazon's Q3 guidance, net sales for this quarter are expected to range between $154.0 billion and $158.5 billion, reflecting a growth of 8% to 11% compared to the same quarter last year. Operating income is projected to be between $11.5 billion and $15.0 billion, up from $11.2 billion in Q3 2023.
Amazon Q3 earnings key watch
Several key areas will be closely scrutinized in Amazon's Q3 earnings report:
E-commerce Sales
Amazon.com Inc -Ger'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.
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.
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 capitalize on its extensive e-commerce customer base.
AI
As with 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.
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 October 23rd ($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.
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