Amazon CEO, Andy JaciReuters Sebastin Boson/AFP Chelsea Jia Feng/Bell
Amazon will report the fourth quarter profits after the bell on Thursday.
Wall Street is optimistic about cloudy demand and retail.
Expectations are high for Amazon’s performance in 2025.
with Amazon The profits are just around the corner, Wall Street investors expect strong results from the technology giant.
Titan is scheduled to present a report after the bell on Thursday, and analysts are optimistic about the company’s performance at the end of the year. The strong demand for holidays and the growth of advertising revenue is among the positive engines.
More attention is the Amazon platform of cloud computing, AWS, which investors expect to be major growth drivers in the fourth quarter and 2025.
Here is what senior analysts aspires before the results of Amazon profits.
Bank of America says Amazon is likely to overcome the estimates of operating profits at $ 19.7 billion after the strong fourth quarter led by a strong holiday season. The company is scheduled to reach $ 187 billion of quarterly sales, in line with Wall Street’s expectations.
Bofa expects investors to focus on AWS growth, expansion of artificial intelligence, advertising revenues, and expectations for the year 2025. The cloud demand must remain strong, while artificial intelligence may remain a significant share in growth next year.
“Drivers include the growing Amazon partnership with Antarbur, new artificial intelligence shows (including NOVA models, low infrastructure costs on training), and the decline in GPU supplies (supplying the major NVIDIA chips as well The bank said.
Bofa heads a “purchase” rating on Amazon and a price goal of $ 255, about 8 % higher than the current price.
Deutsche Bank is preparing for a profit victory, driven by improving the background of the American consumer and high demand for artificial intelligence. AWS margins and retail profits for each unit of expectations should also be superior, which makes it look at $ 21 billion of operating income that can be achieved for the bank – about 7 % higher than consensus.
“Our confidence in these expectations is enlightened by checks that indicated a widespread acceleration in the general demand of AI, in addition to the increasingly positive industry position towards the AWS group of artificial intelligence services,” the analysts wrote. “To this end, we believe that AWS will add additional artificial intelligence in the fourth quarter in at least hundreds of millions of Q/Q.”
The completion of these rear winds is the increasingly improved cost of the company, strong advertising growth, and better demand for holidays than expected.
Deutsche Bank has a $ 275 target price on Amazon, which is approximately 17 % higher than current levels.
Retail efficiency gains and a strong US holiday season were placed on the right track for a year of meaningful margin expansion, according to Wedbush Securities.
The investment company expects that Amazon 20.7 billion dollars will offer operating income in the fourth quarter, and 9 % higher than unanimity estimates. This number means that the company has exceeded the initial income forecasts 2024 by more than 40 %, and the performance is expected to repeat Amazon.
“Although the tape is above this year, we believe that Amazon is in a position to expect expectations again in 2025, and the operational income estimates for the entire year are 5 % higher than consensus,” said a team led by analyst Scott Devit.
Wedbush is not interested in the perceived winds that turned investors into “excessively preservation” on the sidelines in Amazon, such as high costs behind the company’s satellite initiatives and artificial intelligence initiatives. Instead, retail power, improving loyalty, and AWS AWS and advertising revenues will lead the e -commerce giant towards more gains.
Wedbush maintains the “Outperform” rating on Amazon. The target price increased to $ 280, which means approximately 19 % of the current levels.
Amazon puts robots at its warehouse business center, a feature that may be not suspended, according to research analyst Brian Novak.
He wrote: “Amazon now has industrial robots that can increase efficiency through storage, inventory management, selection/package, sorting and external stages of the demand for demand.” “Given that the costs of loyalty constitute approximately 20 % of retail revenues (where employment constitutes an estimated 60 % of the costs of fulfillment), automation can have a significant impact on profit capabilities before benefits, taxes and long -term depreciation.”
This is a long -term positive that can open $ 10 billion in the company’s savings by 2030, if 30 % to 40 % of American Amazon units are served by warehouses that support robots.
Morgan Stanley carries a “weight gain” rating on Amazon and the goal of $ 280, indicating approximately 19 % of the current levels.
Improving spending growth in the fourth quarter has convinced Mizuho analysts that consumer spending is normalized, which is a micro positive for the giant of e -commerce. Pricing improvements to both food and estimated products indicate a healthier consumer environment.
The investment company said: “In general, we believe that the risks/bonus are favorable to Amzn in printing due to (1) AWS Outperformance; (2) expanding the retail margin; and (3) Capital efficiency from Mix SHIFT to dedicated Asics.”
Mizuho has a “Outperform” rating on Amazon shares and carries a $ 285 target and 20 % higher than current levels.
