What's ahead for Season 1 on Amazon? Analysts expect double-digit sales and profit growth – Amazon.com (NASDAQ: AMZN )

Telsey Advisory Group Analyst Joseph Feldman reiterates an outperform rating amazon.com Amazonthe price forecast remains unchanged at $200.

Amazon will report first-quarter 2024 earnings after the market close on Tuesday, April 30.

Feldman expects continued double-digit sales and profit growth this quarter, reflecting strong online spending, gains from expanded merchandise and faster fulfillment, and the stability (and growth) of AWS.

Growth in higher-margin categories and services such as advertising, media and AWS (thanks in part to artificial intelligence-related upgrades) will support a greater focus on profits, the analyst said.

In addition, a redesigned distribution network (eight separate regions serving smaller geographical areas rather than the previous centralized approach) and cost savings will also improve profits.

Analysts added that Amazon should continue to gain market share by leveraging its sticky Prime membership base, small business relationships and technological advantages.

The analyst expects first-quarter sales to rise 12.4% to $143.2 billion, compared with FactSet's estimate of $142.6 billion.

Feldman forecast first-quarter operating income of $11.1 billion, compared with FactSet's $11.0 billion.

Overall, Amazon should continue to benefit from faster growth in higher-margin businesses like advertising and media, as well as gains from productivity initiatives, partially offset by continued investments in strategic initiatives, such as expanding Prime benefits in foreign markets. Solid expense controls should also help, Feldman added.

Price Action: AMZN shares were down 2.66% at $171.90 as of last check on Thursday.

Amazon image created using AI on DALL-E

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