Andy Jassy, ​​Amazon CEO

CNBC

Amazon The third quarter will be announced after the end of Thursday.

Here are the key numbers Wall Street is watching:

  • Earnings per share: Analysts expected 58 cents based on LSEG (formerly Refinitiv) research.
  • Revenue: The analysts investigated by LSEG are $ 141.4 billion

Investors will also be looking at the following business sectors:

  • Amazon Web Service: Expected revenue is $23.2 billion, according to StreetAccount.
  • advertisement: According to Streetaccount, the expected revenue is $ 11.6 billion.

Amazon’s growth slowed dramatically last year due to rising inflation and economic concerns, but while expansion accelerated slightly in 2022, it’s still weaker than usual for the company. Amazon’s retail business is expected to show some improvement as consumers slowly resume discretionary spending.

Analysts expect growth to be 11% in the third quarter, a slight acceleration from the past few quarters. E-commerce sales soared during the pandemic, but then slowed as shoppers returned to brick-and-mortar stores.

Investors will listen closely to comments regarding the fourth quarter, which includes an important holiday period. The December quarter will also include results from Amazon’s Prime Day sequel, which was held in October and “outperformed” last year’s event, the company said.

Analysts surveyed by LSEG expect fourth-quarter earnings of 66 cents and revenue of $166.6 billion, up nearly 12% from a year ago.

Amazon’s cloud computing business, a source of revenue, will also come under scrutiny from Wall Street. Amazon Web Services’ growth has slowed in recent quarters as large companies tend to increase spending.

The excitement around generative artificial intelligence is leading to an increase in cloud workloads, which should be a boon for AWS and its rival public cloud vendors.However, Amazon’s smaller competitors in this space, such as Google and microsoftSo far, various results have been reported so far.

of the alphabet Google Cloud’s revenue was $8.41 billion, below the consensus estimate of $8.64 billion. Sales at Microsoft’s Azure cloud division rose 29%, beating analysts’ expectations of 26%, raising concerns that the software maker is eating into AWS’s market share.

Amazon stock has risen 42% this year, outpacing the Nasdaq’s 23% rise. Investors praised Amazon’s cost-cutting efforts after it became clear that the company, like many of its technology peers, had expanded rapidly during the pandemic.

CEO Andy Jassy, ​​who took over from founder Jeff Bezos in mid-2021, announced in March that he would cut 18,000 jobs between the end of last year and January of this year. In addition, the company announced that it would cut 9,000 jobs. Jassy said the March round will impact Amazon’s advertising, cloud computing, Twitch live streaming and human resources employees.

clock: The market now views Amazon as a cloud and generative AI company.

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