Wedbush Analyst Michael Pachter: 'I Expect Amazon To Beat, But Not By A Lot On The Bottom Line'

When asked about earnings expectations for Amazon.com, Inc. AMZN, Wedbush analyst Michael Pachter told Benzinga that he expects the company to beat, but not by a lot on the bottom line since it continues to spend a lot on new initiatives.

“In particular, their streaming content spending continues to go up, and that will depress earnings until they figure out how to translate the service into higher revenues,” he said.

Pachter also said that Amazon will provide a “tepid” guidance range, likely below most expectations on the bottom line. He added that the company should guide to solid revenue growth (10 percent or more) with a customary range that is super wide (5-15 percent growth).

Amazon traded about 1 percent lower in Monday’s session at $309.06.

Brianna Valleskey contributed to this report.