Street View: Brokerages positive on Amazon despite mixed Q2 results
** Amazon.com AMZN.O reported slowing online sales growth in the second quarter and said cautious consumers were seeking out cheaper options for purchases
** Shares down 8.7% at $168.03 premarket
AWS READYING FOR TAKE OFF
** Bernstein ("outperform," PT: $210) sees Amazon as a coiled spring in the second half of 2024; sees higher revenue contribution from Amazon Web Services (AWS), its cloud service, in Q4, and with Prime Video advertisements to scale in the H2, it says advertising growth poised to re-accelerate in H2
** Brokerage adds even though retail division was soft, Amazon will likely increase its market share in verticals such as apparel, essentials and pharma
** J.P. Morgan ("overweight," PT: $230) sees retail margins continue to expand over time despite some margin headwinds in the third quarter; adds it is encouraged by AWS growth and sees it continuing to tighten the gap with other players
** Baird ("outperform," PT: $213) says Q2 results do not alter their view on the broader growth potential and margin expansion of the consolidated business; adds Q2 results should moderate near-term expectations for AWS
** RBC Capital Markets ("outperform," PT: $215) says it remains positive on the bigger picture for AMZN; adds despite cautious consumers, AMZN is controlling what it can and still stands to drive outsized EBIT growth over the next several years
Reporting by Gokul Pisharody in Bengaluru
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
