Amazon Earnings Preview and Analyst Expectations
Amazon (NASDAQ: AMZN) is set to report its second-quarter results on Thursday, July 30. As of now, the average analyst price target for Amazon is approximately $313, indicating a potential upside of 34% from its current trading price of $233.66, which is about 16% below its 52-week high of $278.56.
The company has experienced a notable decline in its stock value by around 4.6% just prior to this earnings report, amid concerns related to its increasing capital expenditures—projected to be around $200 billion by 2026—primarily for artificial intelligence infrastructure. This spending surge has led to a significant drop in trailing-12-month free cash flow, which decreased from $25.9 billion to $1.2 billion year-over-year.
Despite these concerns, analysts remain optimistic about Amazon’s growth, citing a 28% year-over-year increase in revenue from Amazon Web Services (AWS) for the first quarter, contributing to total net sales of $181.5 billion. Amazon has forecasted net sales for the second quarter of $194 billion to $199 billion, projecting a growth rate of 16% to 19%.
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