Amazon.com (AMZN) is likely to report Q4 revenue largely in line with market expectations, though expectations for its Amazon Web Services cloud-computing unit could take a hit from potential growth in rival Microsoft (MSFT) Azure, BofA Securities said in a note Friday.
The e-commerce giant is scheduled to report Q4 results Thursday. BofA projects revenue at $165.85 billion, compared with the market consensus of $166.06 billion. “We see upside potential to our and Street [estimates],” BofA analysts, including Justin Post, said in the note. The firm pegs AWS revenue at $24.07 billion.
“We think commentary indicating potential for 2024 AWS acceleration and continued y/y margin improvements will help frame a positive 2024 outlook, although sentiment is already quite positive,” the analysts said.
The brokerage maintained its buy rating on the Amazon stock, with a $185 price objective.