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Amazon (AMZN) Earnings Q3 2022

Andy Jassy, ​​CEO of Amazon and then CEO of Amazon.com Inc. Web Services, speaks at the Amazon Web Services (AWS) Summit in San Francisco, California, USA on Wednesday, April 19, 2017 .

David Paul Morris | Bloomberg | Bloomberg | Getty Images

Amazon will report third-quarter earnings after Thursday’s bell.

Here’s what analysts expect:

  • Earnings: Refinitiv estimates 22 cents per share
  • Earnings: Refinitiv estimates $127.45 billion
  • Amazon Web Services: $21.1 billion, according to StreetAccount estimates
  • advertisement: StreetAccount estimates $9.48 billion

Like other big tech companies, Amazon has had a difficult year so far, facing macroeconomic headwinds, skyrocketing inflation and rising interest rates. These challenges coincide with a slowdown in Amazon’s core retail business as consumers return to shopping in brick-and-mortar stores.

Under CEO Andy Jassy took the helm from the founder Jeff Bezos In July 2021, Amazon will Reduce costs aggressively It has spanned numerous departments in recent months.this hut warehouse space, stop some experimental project, shutter its telemedicine services and freeze adoption For the corporate role in the retail business.

Still, analysts expect Amazon to report solid third-quarter results, thanks to easy comparisons to last year’s numbers and potential sales boost from the annual Prime Day discount event. . Held in July.

Revenue growth is projected to be 15%, returning to double-digit growth after three consecutive quarters of single-digit growth.

Another bright spot is Amazon’s advertising department. more resilient Comparison with other companies in the same industry, including meta, alphabet When snapWhose Advertising business hit by the economic environment, Apple iOS privacy changed last year.

tuesday, alphabet Missed Q3 outlook and YouTube ad revenue refused This is the first time since Google began analyzing streaming video unit results. Facebook parent meta stumbled again On Wednesday, it announced disappointing earnings and weaker-than-expected forecasts for the fourth quarter.

“In addition to allocating to TikTok, the shift of budget to lower-funnel activities has been a consistent point of feedback in our conversations with marketers this quarter,” said Loop Capital managing director, who recommends buying Amazon stock. Director Rob Sanderson said in a recent memo to clients. “Amazon is at the bottom of the funnel.”

Wall Street is also eyeing Amazon’s fourth quarter guidance. This forecast could indicate how much demand Amazon expects during the holiday shopping season. Analysts are gearing up for a lackluster season, with online sales expected to grow by just 2.5%. According to Adobe.

Earlier this month, Amazon held a 48-hour Prime Early Access sale. This is the first time he has held two major discount events in the same year. The event kicks off the holiday shopping season early and could help boost Amazon’s sales in the fourth quarter. An analyst surveyed by Refinitiv forecasts fourth-quarter earnings of $155.15 billion.

Analysts take different approaches to earnings-per-share forecasts as Amazon invests heavily in electric car maker Rivian, was published at the end of last year. Rivian’s stock price plummeted, forcing Amazon to merge. $11.5 billion price cut However, Rivian’s stock rebounded a bit in the third quarter, rising 28%, so Amazon may raise its investment.

Amazon’s stock has fallen 34% so far this year, and the S&P 500 Index has fallen 20% over the same period.

look: Big tech is at a low, so it should pick up from here, says EMJ Capital’s Eric Jackson

https://www.cnbc.com/2022/10/27/amazon-amzn-earnings-q3-2022.html Amazon (AMZN) Earnings Q3 2022

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