Q2 Earnings Preview: Why Amazon, Uber, Google Are JPMorgan's Top Picks
Portfolio Pulse from Surbhi Jain
JPMorgan analyst Doug Anmuth highlights Amazon, Uber, and Google as top picks for Q2 2024 earnings season. Despite mixed performance in the internet sector, these companies are expected to show strong growth and financial performance. Amazon is projected to see growth in AWS and retail operations, Google benefits from GenAI and ad revenue, and Uber shows resilience in rideshare and profitability initiatives.
July 16, 2024 | 4:09 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Amazon is expected to see steady growth in AWS and retail operations, with a projected 20% growth in AWS for Q4 2024. The company is also anticipated to expand its North America operating income margin and generate significant free cash flow.
Amazon's strong performance in AWS and retail operations, along with significant free cash flow projections, make it a top pick for Q2 2024 earnings. The company's strategic initiatives and financial metrics support a positive outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Google is highlighted for its strong performance in Generative AI, margin expansion, and favorable advertising backdrop. The company is expected to see a 13% year-over-year FX-neutral revenue growth and a GAAP operating income margin improvement.
Google's advancements in GenAI, coupled with strong ad revenue and margin expansion, position it well for Q2 2024 earnings. The company's financial metrics and strategic initiatives support a positive outlook.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Google's parent company, Alphabet, is expected to benefit from strong Search and YouTube revenue growth, along with progress in Generative AI. The company is projected to see a 13% year-over-year FX-neutral revenue growth and a GAAP operating income margin improvement.
Alphabet's strong performance in Search and YouTube, along with advancements in GenAI, position it well for Q2 2024 earnings. The company's financial metrics and strategic initiatives support a positive outlook.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Uber is expected to show resilience in its rideshare business with a 26% year-over-year growth in gross bookings. The company is also focused on profitability and shareholder returns, with a significant buyback program in place.
Uber's strong performance in the rideshare sector, along with its focus on profitability and shareholder returns, position it well for Q2 2024 earnings. The company's strategic initiatives and financial metrics support a positive outlook.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100