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Key Takeaways
- Amazon will release its first-quarter earnings report after the close of the market on Thursday.
- Analysts expect revenue and profits to increase in the third quarter.
- Amazon will likely face more questions on its AI spending plans, and the impact of the Trump administration's tariffs on its business.
Analysts are bullish about Amazon (AMZN), the online retailer and tech giant, as they expect to release its first-quarter results on Thursday after the closing bell.
Visible Alpha tracks 26 analysts who closely follow Amazon. Each analyst has a price target that is above the current stock level. The average price is around $243. That’s a 29% increase over Friday’s close, but a decrease from the $259 that was set ahead of the quarter’s report.
Amazon is expected report $154,96 billion in revenue for its first quarter. This is an 8% increase from the same quarter last year. Adjusted earnings are expected to climb to $1.74 per share from $1.46 last year.
Amazon shares have fallen by about 14% since January, amidst a market sell-off fueled by tariffs that has hurt the Magnificent 7.
Uncertainty over China Tariffs
Analysts are likely to want more information on Amazon’s plans for keeping up with its artificial intelligence competitors. Wall Street is also paying attention to the impact of Trump administration tariffs.
Raymond James analysts downgraded Amazon shares earlier this month. They said that tariffs against China could hurt Amazon’s profit margins, and also lead to a drop in advertising revenues from sellers who rely heavily on Chinese imports.
Morgan Stanley analysts wrote recently that they estimate 18% of products on Amazon are imported from China, and that roughly 60% of third-party sellers on the platform have "some China exposure" that could affect ad spending plans.
