After Alphabet’s GOOGL exhilarating quarterly results last week, Wall Street will be eying its big tech peer and cloud computing rival Amazon’s AMZN Q1 report on Tuesday, April 30.
More so than Alphabet, Amazon’s stock has been on an ascending course to hit $200 a share after their 20-for-1 stock splits in 2022 and investors may be wondering if it’s time to buy as earnings approach.
Q1 Preview
Amazon’s Q1 earnings are thought to come in at $0.81 per share which would be a 161% increase from $0.31 a share in the comparative quarter. On the top line, Q1 sales are projected to rise 12% to $142.55 billion.
Notably, Amazon has exceeded the Zacks EPS Consensus for five consecutive quarters and has posted an impressive average earnings surprise of 51.04% in its last four quarterly reports. Furthermore, the Zacks Expected Surprise Prediction (ESP) indicates Amazon could exceed earnings expectations again with the Most Accurate Estimate having Q1 EPS at $0.87 and 7% above the Zacks Consensus.
Image Source: Zacks Investment Research
Cloud Expansion
Outside of its commanding e-commerce business, Amazon’s AWS still controls the primary share of the domestic cloud computing market ahead of Microsoft’s MSFT Azure and Alphabet’s Google Cloud. According to Zacks estimates, AWS segment sales are expected to rise 13% to $24.25 billion versus $21.35 billion in Q1 2023.
Edging Towards $200 a Share
Amazon’s stock has risen +19% this year with a current stock price of $180 a share and has matched Alphabet’s YTD performance with GOOGL having a current price of $166. Over the last year, AMZN has now soared +77% to slightly top GOOGL at +55%.
Image Source: Zacks Investment Research
Earnings Estimate Revisions
The catalyst for Amazon’s stock edging closer to $200 a share has been the positive trend of earnings estimate revisions. Over the last 60 days, fiscal 2024 and FY25 EPS estimates have now risen 1% and 2% respectively, and are slightly up in the last week.
Even better, Amazon’s annual earnings are currently projected to rise 42% this year to $4.12 per share with another 31% EPS growth expected in FY25.
Image Source: Zacks Investment Research
Takeaway
Amazon’s stock currently sports a Zacks Rank #2 (Buy). To that point, the trend of positive earnings estimate revisions ahead of its Q1 report is compelling along with the Zack ESP suggesting the Magnificent Seven titan should top bottom line expectations.
Only $1 to See All Zacks’ Buys and Sells
We’re not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not – they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
