Will Amazon meet the market's high expectations for its Q1 Results?
Published by Terence Mahier | Source

Amazon, besides being one of the highest valued company in the world (a little less than half the GDP of France), has also been under the spotlight during the pandemic, with its core businesses potentially benefiting from the situation 😷

Amazon stock surged by +28% since Jan. on speculation that the lockdowns created a boom in e-commerce (Amazon Fresh) and cloud services use (AWS) 🛒☁️
As a matter of fact, Amazon declared a couple of weeks ago that they would hire 175K additional workers, meanwhile, unemployment in the U.S. is reaching new records 🔥

The earning report is set for tonight after the bell. Is Amazon unstoppable?


Extra Insights

The only year in the last 21 where Amazon didn't grow revenue faster than 20% was 2014, when Amazon revenue grew 19%... So it's useless to say that the company is a safe bet in the long term 📈

However, as we've seen recently with Netflix or Domino's, good results are not synonyms of celebrations on the market, especially when expectations are high. The focus of investors will be on the guidance provided by Amazon for the next quarters, and especially how they intend to navigate through the post-pandemic economy 📦



What Happened on the market eventually?

Amazon revenue beat estimates, but the online retail giant said it may post its first quarterly loss in five years for Q2 2020 due to the billions it is spending in response to the coronavirus outbreak...

“If you’re a shareowner in Amazon, you may want to take a seat, because we’re not thinking small,” Amazon said in the press release. “Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit. But these aren’t normal circumstances.”
The stock was down -5% in pre-market.

- Newspill Team 💊
01-May 08:21 (Eastern Time)



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