Analyst: What To Watch For In Amazon's Q4 Report

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Amazon.com, Inc. AMZN soared after its third quarter earnings report in October exceeded expectations. Here is a quick guide of what to expect when the company reports its fourth quarter results on Feb. 1.

The Analyst

Loop Capital Markets' Anthony Chukumba maintains a Buy rating on Amazons' stock with a price target boosted from $1,300 to $1,500.

The Thesis

Chukumba is modeling the following for EPS of $1.86, 38 percent net sales growth, AWS growth rate of 50 percent, and a 10 basis point year-over-year operating margin decline.

Here is a summary of what investors should focus on:

  • Commentary surrounding Amazon's line of consumer electronics after a better-than-expected holiday sales performance.
  • North America and AWS profitability after two quarters of operating margin declines in both units.
  • Any commentary from management relating to advertising strategy.
  • Any plans for President Trump's tax reform.

Price Action

Shares of Amazon were trading higher by 2 percent and hit a new all-time high of $1,354.64 Tuesday.

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Posted In: Analyst ColorPrice TargetPreviewsAnalyst RatingsTrading IdeasAmazon InternationalAnthony ChukumbaAWSLoop Capital Markets
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