Breaking News

LIVE: Here comes Amazon's Q1 earnings (AMZN)

Jeff Bezos Amazon
  • Amazon reports its first-quarter earnings on Thursday after the bell.
  • Amazon's results will give us a good look into how the coronavirus is affecting shopping behavior and the broader e-commerce industry.
  • Amazon's stock price is up nearly 30% this year, which far outpaces the broader market.
  • Visit Business Insider's homepage for more stories.
Amazon is reporting its first-quarter earnings results on Thursday after the bell.
Wall Street expects sales growth to accelerate from last year, reflecting the surge in demand amid the coronavirus pandemic. But that growth is likely coming at the expense of profitability, as Amazon had to increase spending on operations and focus on lower-margin products, like household items, during the quarter.
Here's what Wall Street analysts are expecting for the quarter:
Q1 EPS (GAAP): $6.27, according to consensus estimates compiled by Bloomberg, vs. $7.09 last year
Q1 Revenue: $73.74 billion, consensus estimates compiled by Bloomberg, vs. $59.7 billion a year ago
Amazon Web Services: $10.29 billion, according to analysts surveyed by FactSet, vs. $7.7 billion last year
Amazon's earnings report is important as it could give more insights into how exactly the pandemic is affecting the broader e-commerce space. Many signs point to a surge in demand for online shopping, as more people buy things online or through their mobile apps to avoid physical stores during the outbreak.
Many investors seem to expect Amazon to be one of the biggest beneficiaries of this shift to online shopping. The company's stock hit record highs earlier this month, and is up almost 30% this year, far outpacing the broader market.
Amazon's cloud service remains the company's main profit-driver. Wall Street expects Amazon Web Services to have benefited from the surge in usage for apps, such as Netflix, that use Amazon's cloud service.
Meanwhile, Amazon's advertising business, which saw strong growth in recent quarters, is expected to take a hit as more companies spend less on advertising during the pandemic.
We'll be reporting Amazon's Q1 results as soon as they cross the wire, so hit refresh or click here for the latest updates.
SEE ALSO: Amazon employees learn about their new salaries starting this week — and most will use it to guess last year's performance rating because managers don't usually share it
Join the conversation about this story »
NOW WATCH: Pathologists debunk 13 coronavirus myths


Press Release Distribution

No comments