Amazon's Earnings Expectations: Analysts Bullish on Retail, Ads, and Cloud Growth

# Amazon Q2 Earnings Preview: Stock Momentum, AWS Growth, and AI Investments

Discover what's driving Amazon's recent stock momentum as it prepares to release Q2 2024 earnings. Trading around $230, AMZN shares have gained modest 5% YTD but show gathering strength ahead of today's crucial report. Wall Street remains overwhelmingly bullish with unanimous "buy" ratings and price targets averaging $256.

This episode unpacks Amazon's performance across its three major growth engines: North American e-commerce (bolstered by successful Prime Day and same-day delivery expansion), the increasingly profitable advertising business, and AWS cloud services projected for accelerated H2 growth driven by AI infrastructure investments.

We examine analyst expectations for 10% YoY revenue growth and EPS of $1.33, operational efficiency initiatives protecting margins despite global economic uncertainties, and significant corporate developments including Jeff Bezos' planned stock sales. Learn why major investment banks including Citi, Needham, and Piper Sandler have all raised price targets despite persistent macroeconomic challenges facing the tech giant.

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Episode Transcript

Speaker 1 (00:00):
Amazon stock, trading this morning at just above two hundred
and thirty United States dollars, has seen modest appreciation of
about five percent so far this year, but has gathered
momentum recently ahead of its earnings release today. Yesterday's trading
volume was nearly thirty three million shares, which is below
the three month average of about forty million shares, indicating

(00:22):
moderate activity as investors appear to be waiting for new
guidance from Amazon's upcoming quarterly report. The last quarter's strong rally,
with the stock gaining nearly twenty five percent, as analysts
optimistic that continued growth in online retail advertising and especially
cloud computing will drive future gains. Wall Street sentiment remains

(00:45):
overwhelmingly positive, with all major analyst firms recommending the stock
as a buy. In July alone, multiple investment banks, including
Capital City, Needham, Piper Sandler, Caunter, Fitzgerald, BMO, and Stiffle
lifted price targets to a range between two hundred fifty

(01:05):
and two hundred seventy United States dollars, with the average
one year target now near two hundred fifty six United
States dollars. Recent estimates suggest year over year revenue should
grow about ten percent, and earnings per share for the
second quarter are forecast to rise to one dollar thirty
three cents, up from one dollar twenty six cents last year.

(01:28):
This strength is largely attributed to Amazon's dominance in North
American e commerce, successful prime day sales, rapid expansion of
same day delivery coverage, and an advertising business that is
contributing more substantially to profits. On the cloud front, Amazon
Web Services as anticipated to see accelerating growth in the

(01:49):
second half of the year, bolstered by investment in artificial intelligence,
infrastructure and new product offerings. Despite some persistent macroeconomic uncertainty
such as a trade tariffs and currency swings, Amazon's operational
efficiency initiatives in automation and logistics are helping to defend
margins and maintain a competitive edge. There are also notable

(02:11):
corporate developments such as the planned sale of up to
twenty five million company shares by founder Jeff Bezos through
twenty twenty six, and international strategic moves, including the closure
of an artificial intelligence lab in Shanghai. Overall, Amazon enters
the earnings announcement with strong fundamentals. A very bullish analyst

(02:31):
consensus and multiple avenues for growth across retail, advertising, and
cloud computing, though investors are advised to watch for continued
volatility in an evolving global environment.