Amazon

Kicking off the year, Amazon.com, Trade Desk, and Meta Platforms are top picks within the internet sector, one Wall Street team says. “We’re updating our thoughts as we enter 2024 and revise our digital advertising growth expectations for the year (see digital growth +8.0% y/y vs. +7.2% y/y prior), we still expect a modest environment for e-Commerce (although easing inflation doesn’t hurt), and our subscription group is a mixed bag,” Stifel analysts led by Mark Kelley wrote in a Monday report. The team highlighted a few things they’re paying attention to regarding the stock trio. For Amazon, points to watch include margin improvement, and new advertising formats. For the digital marketing company Trade Desk, Stifel is focused on continued market-share gains, while for Meta, it is looking at Reels, its short-video platform, and Advantage+, an artificial intelligence initiative for advertisers. Stifel rates all three stocks at Buy. It lifted its […]

BofA is excited about Amazon’s advertising opportunity, especially as the company prepares a big push around Prime Video Amazon.com Inc. is known for its expansive e-commerce operation and its cloud-computing prowess, but a third pillar of the company’s business could see more shine in 2024. That’s according to BofA Securities analyst Justin Post, who predicted a “solid” year ahead for Amazon’s advertising business. Admittedly, ads are already a nice contributor for Amazon (AMZN) and amounted to an estimated $32 billion in North America revenue last year, by Post’s math. But he’s upbeat about a new development for 2024 as the company prepares a big advertising push on Prime Video: In the coming weeks, viewers will start seeing ads on the service unless they pay an extra $2.99 a month. Read: Why Amazon’s stock could be 2024’s biggest winner among major internet names “Netflix commentary suggests that an ad sub can

Wedbush analyst Scott Devitt maintains Amazon.com (NASDAQ:AMZN) with a Outperform and raises the price target from $180 to $210.

On Thursday, Chewy Inc (NASDAQ:CHWY) held its Investor Day. The company sees FY24 sales growth to be below the long-term target of a high single-digit percentage. The company sees a long-term adjusted EBITDA margin of 10% and expects to deliver margin accretion in FY24, irrespective of the macro environment. Needham Analyst Anna Andreeva notes that Chewy has focused on only half of the Health TAM ($4 billion insurance and $18 billion products). She writes that over 20% of active customers purchased from Chewy pharmacy, and as pharmacy TAM shifts online, Chewy should benefit across the P&L. From a potential pool of 50 million new customers, 18% (12 million) represent high-value prospects, while 62% (41 million) fall into the mid-value category. Also Read: Federal Violations – Chewy Among Companies Selling Unapproved Animal Drugs. Needham reiterates the Buy rating with a price target of $25, up from $20. As the pet industry increasingly transitions to online

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We trim our 12-month target by $3 to $180, calculated using an EV/EBITDA multiple of 15x (was 17x) against our ’24 adj-EBITDA estimate of $132.3B (up from $115.0B) vs. 12x-30x historical average. We lift our ’23 EPS to $4.62 from $4.42 and ’24 EPS to $6.13 from $4.66. We begin ’25 at $7.28. Q3 GAAP operating income of $11.2B smashed the $7.7B estimate, as AWS margins hit 30.3% (+600 bps from Q2). Revenue of $143.1B (+13% Y/Y) smashed the $141.6B consensus. Yet, AWS growth was 12% Y/Y (flat from Q2), which was in line with consensus but will be viewed as a slight disappointment considering MSFT Azure’s reacceleration in the Sep-Q. AWS could still accelerate in Q4, as AMZN notes several new deals were signed in September

Company Management Andrew Jassy – President & CEO Brian Olsavsky – Senior Vice President & CFO Dave Fildes – Director of Investor Relations Analysts Brian Nowak – Morgan Stanley Doug Anmuth – JPMorgan Eric Sheridan – Goldman Sachs Justin Post – Bank of America Mark Mahaney – Evercore ISI Justin Post – Bank of America – Analyst I’ll ask about AWS. I guess the first question is, as you look forward in the fourth quarter, you mentioned you’ve signed some new deals. Are you seeing less cost optimization as you look forward? Or do you think it will be similar to Q3? And then second, you couldn’t help but notice the big margin improvement in AWS all the way back to where you were 7 quarters ago. Could you talk about the drivers and sustainability of those margins? Andrew Jassy – President & CEO Yes, Justin. I think if you look at

Amazon.com (AMZN) reported Q3 earnings late Thursday of $0.94 per diluted share, up from $0.28 a year earlier. Analysts polled by Capital IQ expected EPS of $0.58. Net sales for the quarter ended Sept. 30 were $143.08 billion, up from $127.1 billion a year earlier. Analysts surveyed by Capital IQ expected $141.56 billion. The company said it expects Q4 net sales to range between $160 billion and $167 billion. Analysts surveyed by Capital IQ are expecting $167.04 billion.

Amazon.com Announces Third Quarter Results SEATTLE—-October 26, 2023– Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its third quarter ended September 30, 2023. — Net sales increased 13% to $143.1 billion in the third quarter, compared with $127.1 billion in third quarter 2022. Excluding the $1.4 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 11% compared with third quarter 2022. — North America segment sales increased 11% year-over-year to $87.9 billion. — International segment sales increased 16% year-over-year to $32.1 billion, or increased 11% excluding changes in foreign exchange rates. — AWS segment sales increased 12% year-over-year to $23.1 billion. — Operating income increased to $11.2 billion in the third quarter, compared with $2.5 billion in third quarter 2022. — North America segment operating income was $4.3 billion, compared with an operating loss of $0.4 billion in third quarter 2022. —

Amazon Q3 EPS 94 Cents; FactSet Consensus 59 Centsd.

Amazon.com Guides For Q4 Sales of $160-$167 Billion, Vs CIQ Analyst Consensus of $167 Billion.

Amazon.com (AMZN) reported Q3 earnings late Thursday of $0.94 per diluted share, up from $0.28 a year earlier. Analysts polled by Capital IQ expected EPS of $0.58. Net sales for the quarter ended Sept. 30 were $143.08 billion, up from $127.1 billion a year earlier. Analysts surveyed by Capital IQ expected $141.56 billion. The company said it expects Q4 net sales to range between $160 billion and $167 billion. Analysts surveyed by Capital IQ are expecting $167.04 billion.

Oppenheimer analyst Jason Helfstein reiterates Amazon.com (NASDAQ:AMZN) with a Outperform and maintains $170 price target.