Amazon (NASDAQ: AMZN) is gearing up to report its Q4 2024 earnings on Thursday, February 6, following a year of impressive stock gains and sustained financial outperformance.
The e-commerce and cloud giant saw its stock surge 47.39% in 2024, marking seven consecutive quarters of beating earnings estimates, with the latest report released on October 31.
With the booming holiday shopping season, continued expansion across key business segments, and growing demand for AI and cloud services, expectations for another strong quarter are high.
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At press time, Amazon’s stock is trading at $242.35, reflecting a 10% year-to-date gain and a 41% increase over the past 12 months. With expectations running high, the company has seen a flurry of price target updates, with most analysts maintaining a bullish outlook.
What to watch for in Amazon’s Q4 earnings
Amazon’s earnings per share (EPS) are expected to rise by 48% to $1.49, with revenue projected to grow 10% to $187.3 billion, according to FactSet estimates.
In addition to Amazon Web Services (AWS), advertising, and e-commerce sales, Amazon’s capital expenditures and spending forecasts will be closely watched, particularly as the company continues to increase its investment in data center capacity.
The recent Stargate announcement has further intensified interest in Amazon’s long-term infrastructure strategy and its plans to scale cloud and AI-driven services.
Analyst revise Amazon stock price targets
Analysts have generally remained optimistic about Jeff Bezos’s company, as evidenced by its overall ‘strong buy’ rating across price target aggregate platforms.
Benchmark recently raised its price target on Amazon from $215 to $265, maintaining a ‘Buy’ rating ahead of the company’s Q4 2024 earnings report.
While expecting another strong, market-share-gaining quarter, the firm cautions that elevated sentiment and high sell-side enthusiasm around operating income margins in Q1 could create volatility.
However, Benchmark remains confident in Amazon’s long-term growth prospects, noting that any post-earnings dip would present a buying opportunity.
Bank of America has also reiterated its ‘Buy’ rating on Amazon, maintaining a $255 price target, showing continued confidence in the company’s expansion across key segments.
Meanwhile, Evercore ISI analyst Mark Mahaney also expressed optimism about Amazon’s Q4 performance, stating that the firm expects the company to beat earnings expectations while keeping its revenue and operating income guidance within the projected range for the current quarter.
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