Amazon hoping revenue surge will spark new all-time high

Sam North, Market Analyst, eToro says: “Amazon is trading just below its all-time high and things are finely poised. A good report and we’ll likely see a new record, but if there’s anything in there that investors don’t like, the upward trend will be under serious pressure. Just look at Meta last week, which fell over 10% despite strong earnings as investors recoiled at future spending plans.

“Despite brief setbacks in late 2021 and early 2022 due to recession fears and rising input costs, Amazon has reasserted its position as one of the so-called Mag 7, reflected in a 20% share price rise year-to-date increase and an impressive 80% surge over the last five years. Expectations are set at 83 cents per share on a robust revenue of $142 billion. This anticipated surge in revenue marks a significant uplift from last year’s $127 billion.

“Of particular interest is the potential impact of Prime Video, which stands to add around ‘$6.5 billion of incremental revenue’ once fully integrated worldwide. With the ongoing rollout of ads on Prime, analysts anticipate substantial revenue gains, positioning the business as a formidable competitor in the digital advertising landscape.

“Also central to Amazon’s success is its perception as a frontrunner in harnessing generative AI, particularly through its AWS division, which has emerged as the cornerstone of its business. The business faces fierce competition in this area from the likes of Meta, Alphabet and Microsoft but has shown its ready to compete with initiatives like Bedrock AI-platform and Amazon Q.”