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TIME TO BUY AMAZON (AMZN) STOCK AFTER AWS FUELS STRONG Q1 RESULTS

Shaun Pruitt May 01, 2024

AMZN Quick QuoteAMZN MSFT Quick QuoteMSFT GOOGL Quick QuoteGOOGL

Better trading starts here.



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Investment Ideas

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Read MoreHide Full Article

Amazon (AMZN Quick QuoteAMZN - Free Report)  was the latest tech giant to
impressively top Q1 expectations reporting after market hours on Tuesday and
seeing its stock spike +2% in today’s trading session.

As part of the “Magnificent Seven”,  Amazon has continued to lift the market’s
performance in recent years with AMZN now up +18% year to date. That said, let’s
review Amazon’s Q1 results and see why now may still be a good time to buy stock
in the e-commerce behemoth.


Image Source: Zacks Investment Research


Q1 Review & Cloud Growth

Amazon’s AWS cloud computing segment fueled its strong Q1 results driven by
growth in generative AI and non-generative AI workloads across various
industries. First quarter sales increased 12% to $143.3 billion and came in
slightly above estimates of $142.52 billion. AWS contributed $25 billion to the
top line, beating estimates by 3% and increasing 17% year over year as Amazon
remains the domestic cloud leader ahead of Microsoft’s (MSFT Quick QuoteMSFT -
Free Report) ) Azure and Alphabet’s (GOOGL Quick QuoteGOOGL - Free Report) )
Google Cloud.


Image Source: Zacks Investment Research

More importantly, Amazon’s operating income skyrocketed 221% to 15.3 billion.
This led to earnings of $1.13 per share which beat the Zacks Consensus of $0.83
a share by 36% and climbed from $0.31 a share in the comparative quarter.
Notably, Amazon has now exceeded earnings expectations for six consecutive
quarters and has posted an average earnings surprise of 48.17% in its last four
quarterly reports.


Image Source: Zacks Investment Research

Q2 Revenue Guidance

For the second quarter, Amazon expects net sales to be between $144-$149 billion
or 7%-11% growth which falls slightly below the current Zacks Consensus of
$150.21 billion or roughly 12% growth (Current Qtr below). According to Zacks
estimates, Amazon’s total sales are projected to expand 11% this year and jump
another 11% in fiscal 2025 to $716.01 billion.


Image Source: Zacks Investment Research

Average Zacks Price Target

With many analysts raising their price targets for Amazon’s stock this morning
including those of UBS and Oppenheimer, it's noteworthy that the Average Zacks
Price Target of $209.95 suggests 20% upside from current levels.


Image Source: Zacks Investment Research

Bottom Line




At the moment, Amazon's stock sports a Zacks Rank #2 (Buy). Although Amazon’s
revenue guidance fell slightly below the Zacks Consensus, earnings estimate
revisions could go up after the company comfortably exceeded Q1 EPS estimates
and posted strong growth outside of its e-commerce buisness. 

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or
more in 2024. While not all picks can be winners, previous recommendations have
soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which
provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>






SEE MORE ZACKS RESEARCH FOR THESE TICKERS



NORMALLY $25 EACH - CLICK BELOW TO RECEIVE ONE REPORT FREE:


Amazon.com, Inc. (AMZN) - free report >>

Microsoft Corporation (MSFT) - free report >>

Alphabet Inc. (GOOGL) - free report >>


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APPLE EVENT: WHAT INVESTORS SHOULD KNOW

TIME TO BUY STOCK IN THESE CLOUD LEADERS AS Q1 EARNINGS...

DON'T OVERLOOK THESE TOP MEDICAL STOCKS AS Q1 EARNINGS...

3 MUST-BUY STOCKS BUY FOLLOWING EARNINGS

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TIME TO BUY STOCK IN THESE CLOUD LEADERS AS Q1 EARNINGS...

DON'T OVERLOOK THESE TOP MEDICAL STOCKS AS Q1 EARNINGS...


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PUBLISHED IN

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large-cap magnificent-7 tech-stocks


ZACKS' 7 BEST
STRONG BUY STOCKS FOR MAY, 2024

Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to
skyrocket within the next 30-90 days.

Recent stocks from this report have soared up to +67.5% within 30 days - this
month's picks could be even better. See our report's 7 new picks today - it's
really free!

▸ See Our 7 Strongest Buys Free

Privacy Policy ¿¿|¿¿ No cost, no obligation to buy anything ever.
Past performance is no guarantee of future results.





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