What To Expect From Amazon.com Earnings Report

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Following the release of top tech stock earnings this week, U.S. tech e-commerce giant Amazon Inc will be releasing its second quarter earnings report on Thursday.

The company’s stock which has been trading above the $1000 level above during the past week is expected to deliver an upbeat earnings report that will send Amazon shares to as high as $1,095. Shares of the company are currently trading at around $1043 per share.

After it crossed the $1000 level for the first time last May, it traded back down below after a few sessions before climbing back up on reports that its Amazon Prime Day sales were the biggest the company has recorded.

For Amazon’s earnings, the company is expected to deliver an earnings of $1.41 per share considerably lower from their earnings of $1.78 per share during the same quarter last year. Other analysts expect the company’s earnings to stand at around $1.50 per share. The company’s revenue is expected to come at around $37.3 billion versus their revenue of $30.4 billion from the same period last year.

Amazon estimates show that the company expects its net sales to rise by 20% year over year which would amount to $36.5 billion while its operating profit is expected to range at around $425 million to as much as $1.075 billion.

Investors would be looking at Amazon’s earnings for its web services which is currently the company’s highest revenue driver at the moment. The company’s revenue from its web services were up by 42% during the previous quarter but represents a decline of 47% during the fourth quarter last year.

The increase in the number of Amazon Prime members is also expected from the upcoming earnings report following a successful Prime Day that reportedly lured in many new members.

The company which has been growing and expanding its overall operations lately has been making acquisitions in the past months. Just recently, it announced its plans to acquire Whole Foods for around $14 billion in able to expand to a grocery business. It has also been opening various fulfillment centers across the United States that will create thousands of new jobs in each area.

Amazon shares were predicted to rally by as much 25% during the next five years after being given an outlook of 16% for the same period as the company succeeded more in becoming the top e-commerce company. Amazon’s stock is known to have rallied in the past following positive earnings numbers and vice versa.

Amazon shares have rallied this year by up to 38% and almost 16% for the past three months.

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