Amazon To Continue Winning Streak, Analyst Predicts Revenue Surge Amid Booming AWS and Retail Sales
Portfolio Pulse from Anusuya Lahiri
Truist analyst Youssef Squali maintains a Buy rating on Amazon (AMZN) with a $195 price target, predicting revenue growth driven by AWS and retail sales. U.S. revenue is expected to exceed consensus, reaching $87.0 billion (+13% Y/Y) for the quarter. The first-ever U.S. Big Spring Sale is anticipated to boost demand. Total Q1 revenues are projected at $143.1 billion (+12.3% Y/Y), with AWS revenues at $24.5 billion (+14.5% Y/Y). Amazon's ads business is also expected to sustain above-market growth. AMZN shares rose 0.40% to $178.66. Exposure to AMZN can be gained through XLY and FDIS ETFs.
March 22, 2024 | 5:24 pm
News sentiment analysis
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POSITIVE IMPACT
Amazon is expected to see revenue growth driven by AWS and retail sales, with a positive outlook from Truist analyst Youssef Squali. The first-ever U.S. Big Spring Sale is anticipated to further boost demand.
The positive analyst rating and expected revenue growth, especially from AWS and the retail sector, indicate a strong short-term outlook for Amazon. The Big Spring Sale is likely to attract additional consumer interest, potentially driving the stock price up.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Fidelity MSCI Consumer Discretionary Index ETF (FDIS) provides exposure to Amazon. The optimistic forecast for Amazon's revenue growth could positively influence FDIS.
As FDIS includes Amazon among its holdings, the positive revenue growth forecast for Amazon is expected to positively affect FDIS's short-term performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
SPDR Select Sector Fund – Consumer Discretionary (XLY) offers exposure to Amazon, which is expected to see revenue growth. Positive outlook on Amazon may benefit XLY.
Given that XLY includes Amazon in its holdings, the positive outlook and expected revenue growth for Amazon are likely to have a favorable impact on XLY's performance in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70