Bloomberg/Getty Images
Amazon CEO Jassy: “2023 will be a very important year”
He added: “2023 was also a very important year for generation system deliveries and customer trials.” [artificial intelligence] Or Gen AI from AWS. ”
JPMorgan analyst Doug Anmas discussed AWS in a report on the internet sector.
Anmas said the company remains generally positive about the sector ahead of the first quarter results release.
The analyst said investor sentiment is generally constructive, with some seeing higher valuations and higher expectations.
Related: Amazon seeks to win back key customer groups lost to COVID-19
“Amazon remains the company’s best idea heading into 2024, despite being the largest owner across our scope,” he said.
“We believe Amazon is well-positioned as a market leader in e-commerce and public cloud,” the company said.
Anmuth said he expects Amazon Web Services to maintain strong performance in the first quarter and the full year.
“We believe that Amazon’s flexibility and Prime membership, which allows us to flexibly push our own inventory and third-party inventory, is a huge advantage in our store business. We also believe that Amazon’s ability to flexibly push its own inventory and third-party inventory has been a huge advantage in our store business,” he said. “That start has led to AWS having about 35% of the global market share,” he said. He said.
Additionally, analysts expect strong store growth. Operating profit margin in North America expanded. International margins and improved cost discipline, all supporting multi-year increases in free cash flow.
Ammuth said optimization mitigation, new workload introduction, favorable comparisons, and very early generative AI monetization should support AWS through 2024.
The analyst predicted that the North American operating profit margin in 2024 would be 6.1%, with room for upside due to regionalization, inventory placement, inbound delivery optimization, and advertising effectiveness.
Analysts expect Amazon stock to rise
Amazon is scheduled to announce its first quarter results on April 25th. Analysts surveyed by FactSet estimate the company earned 83 cents per share on revenue of $142.6 billion.
A year ago, Amazon earned 31 cents a share on $127.4 billion.
Other retail inventory:
RothMKM analyst Rohit Kulkarni affirms his Buy rating and $205 price target on Amazon, while recent discussions with the investment firm and 25-year e-commerce veteran suggest the company has a supply chain This suggests that there is still room for significant efficiency gains.
The company hosted a webinar with industry veterans and said Amazon will continue to adjust its regional distribution model to improve delivery efficiency. The veteran analyst said Amazon still has more than 20% efficiency left.
Related: Amazon CEO announces exciting news for Prime members
Stifel analyst Mark Kelly raised his Amazon price target for the company from $200 to $224 while reiterating his buy rating on the stock. [the] We believe the stock price will continue to trend toward the higher end of its valuation range over the past two years. ”
“Sentiment towards the group has been mixed since the start of 2024, although positioning has shifted slightly, with positive sentiment remaining concentrated around large-cap and mega-cap stocks,” the analyst said in a group preview note. “There is,” he said.
The company’s thinking at the start of the first quarter earnings season was “virtually unchanged” from the beginning of the year. In other words, the advertising environment continues to improve, e-commerce continues to be “working hard,” and the subscription name is “continued.” mixed bag. ”
“The wild card for this quarter comes from the potential for qualitative commentary to be muted as the situation in the Middle East worsens (we’ll probably also hear talk of a pause in brand spending),” Kelly said. Ta.
Related: Veteran fund manager picks stocks to watch in 2024
