Amazon's Profitability Will Hinge On Its Cloud Business, AWS - One Analyst Gives Us An Optimistic View
Portfolio Pulse from Shivani Kumaresan
BofA Securities analyst Justin Post reiterated a Buy rating on Amazon (AMZN) with a price target of $174.00. He expects Q3 revenue and profit to be slightly above the street view at $142 billion and $8 billion, respectively. AWS revenue growth is the top Q3 metric, with Q3 beat possible as online spending was up 1% y/y in Q3. For Q4, revenue is expected to be at $169.3 billion versus the $166.5 billion consensus. The two tenets for bulls on Amazon stock in 2024 are AWS acceleration to high teens and NA retail margin improvement to about 5%.
October 23, 2023 | 3:32 pm
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POSITIVE IMPACT
BofA Securities analyst expects Amazon's Q3 revenue and profit to beat street view, with AWS revenue growth as the top Q3 metric. Q4 revenue is also expected to beat consensus.
The analyst's positive outlook on Amazon's Q3 and Q4 revenues, along with the expected growth in AWS revenue, could potentially drive the stock price up in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100