The "Magnificent Seven" typically refers to the 1960 Western film, but today’s stock market investors recognize the term as the set of seven big tech stocks, namely Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, Nvidia N
U.S. stocks reversed course to rise on Monday as bond yields pulled back after hitting the crucial 5% mark earlier in the session, while investors awaited earnings from the world's largest technology companies and key economic data.
Meta Platforms will release its Q3 earnings this week. Here's a preview of Wall Street's earnings expectations, plus the 7 things that investors should watch for in the report.
The benchmark U.S. Treasury yield rose above 5% to a 16-year high on Monday, while a key S&P indicator that points to a downturn in stocks spelled trouble ahead for the U.S. economy as interest rates are expected to stay high for an extended period.
Advanced Micro Devices shares have trailed the stellar rally in Nvidia stock. However, Wall Street sees upside potential, with AMD capturing opportunities in the AI market.
We kick off the busiest week in Q3 earnings season so far relatively quietly, with no marquee stock names posting results today. There are also no big economic prints forthcoming until Tuesday, either, but it’s not stopping pre-ma
Another big earnings week is ahead of us with a couple of big tech companies reporting as well as some other leaders in their respective industries that will provide investors with a lot of insights on how the consumer and economy is doing. In this video, I will go over the five
(RTTNews) - Amazon (AMZN) said a strategic collaboration between its Counterfeit Crimes Unit and the Prada Group resulted in an International counterfeiter's guilty plea to crimes related to the sale of counterfeit luxury products. The criminal referral from the CCU to Chinese la
December S&P 500 futures (ESZ23) are down -0.76%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.92% this morning as the benchmark U.S. 10-year yield hit 5% for the first time since 2007 while market participants geared up for earnings reports from some of the biggest tech heavyweights as well as the release of the Fed’s favorite inflation gauge.
During periods of heightened uncertainty on Wall Street, it's not uncommon for investors to seek safety in profitable, time-tested, outperforming businesses. While the "FAANG stocks" have been somewhat of a mainstay for investors over the past decade, it's companies enacting spli
U.S. stock index futures started the week on a sour note as investors worried that the war between Israel and Hamas could turn into a bigger Middle Eastern conflict, while awaiting quarterly results from the world's largest technology companies and some key economic data.
Global shares hit seven-month lows on Monday as the risk of a wider conflict in the Middle East and the prospect of a long stretch of high interest rates soured sentiment at the start of a week full of mega-cap earnings and key data.
Asian shares hit one-year lows Monday as the risk of a wider conflict in the Middle East clouded sentiment in a week laden with data on U.S. growth and inflation as well as earnings from some of the world's largest tech companies.
Asian shares slipped on Monday as the risk of a wider conflict in the Middle East clouded sentiment in a week laden with data on U.S. growth and inflation as well as earnings from some of the world's largest tech companies.
Asian shares drifted lower on Monday as the risk of a wider conflict in the Middle East clouded sentiment in a week laden with data on U.S. growth and inflation as well as earnings from some of the world's largest tech companies.
Last week was a wild ride, to say the least. Tesla (TSLA) reported earnings and the market did not like what it had to say, as it proceeded to sell off and close the week down over 15%.
Amazon (
NASDAQ:AMZN)
has emerged as a compelling choice for investors this year, with its shares soaring 49%. This surge in investor optimism was driven, in part, by better-than-expected Q2 margins in the North American segment and favorable comments regarding the trends seen in Amazon Web Services (AWS).
However, that positive sentiment has turned more cautious recently. According to Goldman Sachs analyst Eric Sheridan, concerns have arisen, including the stability of cloud computing trends in Q3 (rather than a reacceleration), emerging competition from cross-border eCommerce platforms like Temu and TikTok Shop, increased holiday hiring, and a recent uptick in energy prices.
Addressing these issues, an analysis of the cloud computing sector for September indicates that AWS revenue patterns remained relatively consistent, and it appears that investors had anticipated a more significant upturn following the company's Q2 earnings call. “Accordingly,” says the 5-star analyst, “we believe that investor expectations for near-term AWS revenue growth have come down in the last month, which we view as a contributor to the pullback in AMZN shares.”
It's worth mentioning here that following the Q2 earnings release, analysts' predictions for AWS Q3 revenue saw an upward adjustment for the first time in at least three quarters. Currently, consensus anticipates a modest acceleration in Q3 and a more substantial one in Q4. “We model stable AWS revenue growth in Q3 over Q2 (at 12% YoY) and reacceleration in Q4 (+14% YoY) on easier comps, a lower pace of optimization, and growth in new workloads,” says Sheridan.
As for the growing competition, Sheridan thinks that Temu has a “moderate overlap” with Amazon’s US users and a bigger effect on retailers that are “more exposed to the lower-end consumer.” The launch of TikTok Shop’s mid September US launch, though, is an event that will “warrant monitoring” over the coming months.
On to the hiring issue, on which Amazon has said it will add 250,000 holiday workers this year, 100,000 more than those hired last year and investors are fearing “pressure on AMZN’s retail margin” in Q4. “We instead believe that incremental hiring could be a positive read-across on AMZN’s internal demand forecast into the holidays,” counters Sheridan.
Likewise, heading into the Q3 print, the rise in energy prices is looked at as being a “headwind to retail margins,” but Sheridan has a retort to that too. “We would encourage investors to instead focus on the broader margin recapture story in AMZN’s North America segment (relative to pre-COVID) as we expect margins to continue benefiting from operating leverage against a more streamlined fulfillment/shipping infrastructure over the next several quarters,” the Goldman analyst said.
All told, Sheridan remains firmly in Amazon’s corner, reiterating a Buy rating on the shares along with a $175 price target, suggesting shares will post growth of ~40% in the months ahead. (To watch Sheridan’s track record,
click here)
On the Street, only analyst remains skeptical regarding Amazon’s prospects but all 41 others are positive, resulting in a Strong Buy consensus rating. The Street’s average target of $175.38 is practically the same as Sheridan's. (See
Amazon stock forecast
)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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