Amazon's Earnings Poised for Boost from AWS, Ads, and Retail Innovation: BofA Analyst
Portfolio Pulse from Anusuya Lahiri
BofA Securities analyst Justin Post reiterated a Buy rating on Amazon (AMZN) with a $204 price target, expecting Q1 earnings to benefit from AWS, advertising, and retail innovation. Post forecasts Q1 revenue at $143 billion, with AWS expected to grow quarter-over-quarter by $545 million and 16% year-over-year, slightly above market expectations. He also adjusted Q2 revenue expectations to $149.9 billion due to U.S. dollar depreciation and seasonal sales events. The analyst highlights Amazon's Big Spring Sale and Prime Video ads as additional revenue drivers, suggesting room for multiple expansion despite a year-to-date increase in the forward P/S multiple.
April 22, 2024 | 7:38 pm
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Amazon's Q1 earnings are expected to benefit from AWS, advertising, and retail innovation, with a revenue forecast of $143 billion. BofA analyst Justin Post maintains a Buy rating with a $204 price target, highlighting potential for multiple expansion.
The positive outlook from BofA Securities, including a Buy rating and a $204 price target, suggests strong confidence in Amazon's growth trajectory, particularly in AWS, advertising, and retail segments. The detailed revenue forecasts and expectations of operational efficiencies and strategic shifts, such as the Big Spring Sale and Prime Video ads, further support a bullish view. The anticipation of new AI software features and a focus on multiple expansions in 2024 also contribute to the positive short-term impact on Amazon's stock.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100