Analysts expect big things from Amazon’s Q1 earnings
The e-commerce giant will unveil its first quarter results after the market closes on Thursday, with Wall Street analysts expecting the company to get a major boost in sales from the Covid-19 crisis.
Amazon will unveil its first quarter (Q1) results after the market closes on Thursday’s session, with Wall Street analysts expecting great things from the e-commerce giant.
Expectations on Wall Street are so high because billions of people are stuck in lockdown amid the Covid-19 crisis with little to pass the time but spend their money online. And where better to splash the cash than on the world’s largest online marketplace.
In expectation of a surge in online sales, Amazon announced plans to hire 100,000 additional workers to cope with the rise in consumer demand early on in the crisis. The company later announceed it would hire a further 75,000 employees to meet demand.
Amazon shares climb higher amid Covid-19 crisis
Unlike many other stocks, Amazon shares have surged since the outbreak began, with the stock up 21% year-to-date, while the broader market continues to struggle, with the S&P 500 down 12% over the same period.
Even with the company’s share price soaring, Wall Street analysts remain bullish about the stock and believe that shares could climb even higher in 2020.
Of the 43 analysts offering 12-month price targets for Amazon the median target sits at $2525, with a high estimate of $2900 and a low estimate of £1850. The median estimate represents a 9.12% increase from its $2314.07 closing price on Tuesday.
According to Amazon’s own guidance, it forecast revenue generation of between $69 billion to $73 billion in Q1 2020. However, its guidance came before the Covid-19 pandemic took hold, with analysts expecting the e-commerce company to exceed its own guidance, with Wall Street’s consensus revenue forecast sitting at $73.06 billion, while profits are forecast to hit $6.32 per share.
‘Over the last several weeks, Amazon’s share of essential products, like health and household supplies as well as groceries, has ramped significantly and we believe this demand can lead to greater consumer wallet share gains longer term,’ JMP Securities analyst Ronald Josey said in a note to investors.
‘With traditional retail likely less of a competitor going forward as brick-and-mortar retailers close and/or significantly reduce footprints, we believe Amazon is among the best positioned to benefit from rising e-commerce trends.’
How to trade stocks with IG
Looking to trade Amazon and other stocks? Open a live or demo account with IG and buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:
Create an IG trading account or log in to your existing account
Enter ‘Amazon’ in the search bar and select it
Choose your position size
Click on ‘buy’ or ‘sell’ in the deal ticket
Confirm the trade
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
