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Nasdaq AMZN Amazon

Amazon Delivers A Blowout Quarter With Strong Sales; Shares Gain

5 years 5 months ago

Amazon.com, Inc. (AMZN) reported better-than-expected 1Q results driven by higher revenues, which was fueled by outstanding performance in all segments. Shares of the e-commerce company rose 2.4% in Thursday’s extended trading session.

Amazon reported 1Q earnings of $15.79 per share that widely surpassed analysts’ expectations of $9.54 and more than tripled on a year-over-year basis. Adjusted net sales of $108.5 billion beat the Street’s estimates of $104.46 billion and grew 41% from the year-ago period.

The North America segment net sales surged 39% year-over-year and came in at $64.4 billion in the quarter, while International sales increased 50% to $30.6 billion. Additionally, net sales for the AWS unit were $13.5 billion, up 32%. (See Amazon stock analysis on TipRanks)

For 2Q, the company projects net sales to land between $110 billion and $116 billion, versus the consensus estimate of $108.68 billion. This would represent year-over-year growth of between 24% and 30%.

Following the 1Q results, Robert W. Baird analyst Colin Sebastian reiterated a Buy rating and a price target of $4,000 (15.2% upside potential).

Sebastian believes, “Q1 results support our near-term and longer-term positive view as Amazon’s quasi-subscription platform is benefiting from multiple and compounding tailwinds - Prime memberships, Seller services (including logistics/last-mile delivery) AWS, and advertising. AWS momentum also strong as a broader range of enterprises are adopting cloud infrastructure.”

“We also note that restrictions last year on warehouse capacity and non-essential products mean Amazon is less susceptible to tough e-commerce growth comps,” the analyst added.

Consensus among analysts is a Strong Buy based on 33 unanimous Buys. The average analyst price target stands at $4,131.19 and implies upside potential of 19% to current levels. Shares have gained 40.3% over the past year.

Additionally, Amazon scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Related News:
Microsoft Reports Better-Than-Expected 3Q Results; Shares Drop 3% After-Hours
Alphabet Pops 4% After A Blowout Quarter, Google Cloud & Ad Revenues Outperform
Apple’s 2Q Sales Pop 54% As Services and Mac Revenue Booms; Shares Gain After-Hours

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(RTTNews) - Amazon.com Inc. (AMZN) Thursday reported first-quarter results, with both earnings and revenues trouncing Wall Street estimates, as the online retail giant continues to benefit from the ongoing COVID-19 pandemic as more and more customers shop on the e-commerce platfo
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Amazon.com Inc. Reports Gain In Q1 Earnings

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(RTTNews) - Amazon.com Inc. (AMZN) reported earnings for its first quarter that increased from last year.The company's bottom line came in at $8.11 billion, or $15.79 per share. This compares with $2.54 billion, or $5.01 per share, in last year's first quarter.
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Noteworthy Thursday Option Activity: AMZN, GOOGL, CMG

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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Amazon.com Inc (Symbol: AMZN), where a total of 215,775 contracts have traded so far, representing approximately 21.6 million underlying shares. That amounts to about 66
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Amazon’s Tussle With Microsoft Over Jedi Contract Continues – Report

5 years 5 months ago
Amazon’s (AMZN) bid to overturn the awarding of the Joint Enterprise Defense Initiative’s (JEDI) contract to Microsoft (MSFT) has received a significant boost, according to the Washington Business Journal (WBJ). The Court of Federal Claims has denied motions by the Department of Justice and Microsoft to dismiss the contract protest lodged by Amazon Web Services (AWS).WBJ reports that the long-running dispute over the lucrative cloud contract is far from over. A ruling by Judge Patricia Campbell-Smith means the Amazon cloud unit still has a chance to push for the deposing of the $10 billion contract with Microsoft.AWS has always insisted that the awarding of the JEDI was not done properly. The cloud unit has cited political interference by the then-president Donald Trump, given his long held anti-Amazon sentiments.According to the WBJ, AWS was originally the leading contender for the multi-billion contracts before Trump’s interference. (See Amazon stock analysis on TipRanks)An AWS spokesperson stated, “The record of improper influence by former President Trump is disturbing, and we are pleased the court will review the remarkable impact it had on the JEDI contract award.”The WBJ report states that in response to the court ruling, Microsoft’s corporate vice president of communication Frank Shaw reiterated that it “changes little.” He says the software giant remains ready to perform work on the contract once the current standoff is resolved.BMO Capital analyst Daniel Salmon maintains a Buy rating on AMZN with a price target of $4,200. This implies around 21% upside potential from current levels.Salmon stated, "We think AMZN’s difficult comps owing to the acceleration of eCommerce during the pandemic are well understood, but nevertheless will remain the top focus for the print. With that said, we are more intrigued by the potential change in margin profile as some COVID related expenses could fade as vaccinations rise and restrictions ease.”Wall Street is bullish on AMZN. Consensus among analysts is a Strong Buy based on 33 unanimous Buy ratings. The average analyst price target of $4,118.69 implies 18.7% upside potential over the next 12 months.Amazon scores a robust 9 out of 10 on TipRanks’ Smart Score rating system, implying it could outperform market averages.Related News: SPX Flow To Snap Up Philadelphia Mixing Solutions For $65MVerizon Considers Selling Its Media Division For $5B – ReportFacebook And Gucci Sue International Counterfeiter
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