Amazon CEO Andy Jassy was interviewed on Mad Money by CNBC host Jim Cramer in Seattle, Washington. December 6, 2023.
CNBC
Amazon The company is scheduled to report second-quarter earnings after the bell on Thursday.
Here are the expectations of analysts polled by London Stock Exchange Group (LSEG):
- Earnings per share: $1.03
- income: $148.56 billion
Wall Street is also watching these key numbers:
- Amazon Web Services: Revenue was $26 billion, according to StreetAccount
- advertise: Revenues were $13 billion, according to StreetAccount
Amazon’s revenue growth is accelerating, driven by emerging advertising business and demand for cloud services, but expansion remains weak by the company’s standards. Analysts expect sales to grow 10.5% this quarter from $134.4 billion, compared with 13% growth in the first quarter.
Amazon is wrapping up a mixed earnings season for leading technology companies. Google Parent letter Met analysts’ expectations But YouTube ad revenue disappointed in the second quarter. Microsoftof beat Lower-than-expected Azure cloud revenue cast a shadow over revenue and profits. Yuanof result It beat analysts’ expectations, driven by growth in its core digital advertising business. apple After-hours report Thursday.
Wall Street will be keeping a close eye on Amazon Web Services’ performance this quarter as it races to offer more artificial intelligence products. Microsoft reported that its rival Azure business grew by 29%, while Google Cloud grew at the same rate. Amazon, which leads the cloud infrastructure market, is expected to grow 17.6%, according to StreetAccount.
Analysts at BofA Securities said they viewed Google’s cloud results as “a positive read for AWS,” adding that AWS should benefit from growth in its backlog of revenue and customers who need computing power to train artificial intelligence models. See tailwinds in growing demand.
Over the past two years, Amazon CEO Andy Jassy more disciplined And are always looking for ways to cut costs. Amazon has laid off more than 27,000 employees since the end of 2022, and the layoffs will continue into 2024.
Amazon’s Profits rebound sharply due to cost cutting over the past year. Operating income soared 200% in the first quarter, and analysts expect further growth in the second quarter, expanding about 79% from the same period last year.
Amazon’s advertising business has become one of its biggest growth and profit engines. The division’s revenue increased 24% year-on-year in the first quarter and is expected to grow 22% in the second quarter.
Earlier this year, Amazon join in Its streaming peers include ads in Prime Video content. Prime Video users will now automatically see ads unless they pay an extra $2.99 ​​per month to unlock the ad-free plan. Loop Capital analysts called it a “gangster move” in a July 21 report that could help propel Amazon into becoming an “advertising giant.”
Loop analysts wrote that the advertising business could generate as much as $150 billion in sales by the end of the decade, up from $47 billion last year. They have a buy rating on Amazon stock.
This quarter, Amazon Obtained a highly sought-after position as the NBA’s third rights partner in its new 11-year television deal. It’s the latest example of Amazon’s push into live sports and could boost its advertising business and its Prime Video platform, which it uses to attract new Prime subscribers and drive purchases in its stores.
Amazon shares are up 23% this year, while the Nasdaq is up a little more than 17% during that period.
