Saturday, May 31, 2025

Latest

Amazon: Consensus Price Target Falls After Disappointing Q2 Results

Amazon.com Inc (NASDAQ: AMZN) reported its second quarter financial results on July 29. The company did not continue the earnings beat like its counterparties reported this quarter. The company reported top-line revenue of $113.08 billion, coming in below the $115.14 billion consensus estimate. Revenue grew 27.2% year over year and gross profit grew 34.9% year over year to $48.9 billion. Gross margin came in at 43.2% and operating margin was only 6.8% for the quarter. The company’s net income was $7.77 billion and earnings per share came in at $15.13.

Analysts have had mixed feelings about the results, resulting in the consensus 12-month price target dropping to $4,171.76 from $4,264.77 from before the results were released. Susquehanna Financial has the street high at $5,000 while the lowest 12-month price target comes in at $3,775. Out of the 53 analysts covering the stock, 20 have strong buy ratings, 31 have buys and 2 analysts have hold ratings.

BMO Capital Markets lowered their 12-month price target on Amazon to $4,100 from $4,300 and reiterate their outperform rating, saying that the company had much tougher comps this quarter than other tech companies.

Amazon’s total revenue of $113.1 billion was behind BMO’s estimate of $113.6 billion, but Amazon beat every single business segment, except for online stores. Amazon’s executives explain on the call that there was slower growth in the online space due to lockdown restrictions easing and people spending money on those things rather than online. BMO says that third-quarter guidance also of $106-$112 billion came in a lot lower than their $116 billion estimate.

BMO Capital Markets says that they are left with a few final thoughts coming out of the call, including that AWS growth remains consistent at 30% and that Amazon, “remains at the center of the two most important growth segments in digital advertising: retail media (e.g. Sponsored Product ads) and connected TV.”

Below you can see BMO’s updated third quarter, 2021, and 2022 estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Week Ahead: Earnings Expectations For AMC, RIVN, CRM And More

As we look to wrap up earnings season this week, a number of large names...

Sunday, February 26, 2023, 09:00:00 AM

Canaccord Initiates Coverage On Else Nutrition With C$6.50 Price Target

This morning, Canaccord Genuity initiated coverage on Else Nutrition (TSXV: BABY) with a C$6.50 price...

Monday, December 7, 2020, 04:26:00 PM

BMO: Kirkland Lake Gold Third Quarter Results Are Mixed

Last night, Kirkland Lake Gold (TSX: KL) released their third quarter results. Within the quarter,...

Tuesday, October 13, 2020, 03:01:00 PM

IAMGOLD: Analysts Lower Price Targets Following Q4 Prelim Results

Yesterday, IAMGOLD Corp (TSX: IMG) released their preliminary operating results for the fourth quarter and...

Thursday, January 21, 2021, 11:53:00 AM

Superior Gold: Haywood Focuses On The Potential Catalysts

Superior Gold Inc. (TSXV: SGI) has had a busy week. On June 21, the company...

Friday, June 25, 2021, 02:42:00 PM