The e-commerce leader for physical and digital merchandise, Amazon, is expected to report its second-quarter earnings of $12.24 per share, representing a year-over-year growth of approximately 19%, compared to $10.3 per share in the same quarter a year ago.
The Seattle, Washington-based multinational technology giant is said to achieve revenue growth of about 29% to about $115 billion. The company has consistently exceeded earnings per share (EPS) estimates for the past four quarters.
Comments from analysts
“We expect Amazon (AMZN) to beat consensus estimates for earnings and earnings. The company has reported better-than-expected revenue and earnings in each of the last four quarters. In the past year, as a result of the pandemic, people turned to e-commerce and online marketplaces for their day-to-day needs, resulting in high revenue growth for the company,” Trefis analysts said.
“Momentum continued into the first quarter of 2021, as revenue grew 44% in the quarter. The company is also continuing its expansion in several segments. Our prediction indicates that: that of Amazon valuation is $4241 per share, which is 15% above the current market price of $3703.”
Amazon Stock Price Forecast
Thirty-two analysts who gave stock ratings for Amazon in the last three months, the 12-month average price was forecasting $4,332.90 with a high forecast of $5,500.00 and a low forecast of $3,775.00.
The average price target represents a 19.48% change from the last price of $3,626.39. All those 32 analysts rated “Buy,” none rated “Hold” or “Sell,” according to Tipranks.
Morgan Stanley gave the stock price forecast of $4,500 with a high of $5,300 in a bull scenario and $2,700 in the worst case scenario. The company gave an “Overweight” rating to the e-commerce leader’s stock.
“that of Amazon continue to allow companies with high margins Amazon to drive greater profitability while continuing to invest (last mile delivery, fulfillment, Prime Now, Fresh, Prime digital content, Alexa/Echo, India, AWS, etc.). Amazon Top membership growth is driving recurring revenue and a positive mix shift. Cloud adoption is reaching a turning point. Advertising is an important area for both continued growth potential and profitability,” noted Morgan Stanley analysts.
Several other analysts have also updated their stock outlook. BofA lowered its price target from $4360 to $4350. Credit Suisse raised its target price from $4000 to $4850. Bernstein raised its target price of $4000 from $4200 to $4200.
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