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Valued at a market cap of $2.3 trillion, Amazon.com, Inc. (AMZN) is a leading global technology company that operates in multiple industries, including e-commerce, cloud computing, advertising, digital streaming, and AI. The Seattle, Washington-based company is scheduled to announce its fiscal Q3 earnings for 2025 in the near future.
Ahead of this event, analysts expect this e-commerce giant to report a profit of $1.58 per share, up 10.5% from $1.43 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street’s bottom-line estimates in each of the last four quarters. In Q2, AMZN’s EPS of $1.68 exceeded the forecasted figure by a notable margin of 26.3%.
For the current fiscal year, ending in December, analysts expect AMZN to report a profit of $6.81 per share, up 23.2% from $5.53 per share in fiscal 2024. Furthermore, its EPS is expected to grow 12.5% year-over-year to $7.66 in fiscal 2026.
AMZN has outpaced the S&P 500 Index's ($SPX) 14.4% return over the past 52 weeks, with its shares up 15.6% over the same time frame. However, it has trailed behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 17% uptick over the same time period.
AMZN posted better-than-expected Q2 earnings results on Jul. 31. Due to robust revenue growth across all reportable segments, the company’s total net sales improved 13.3% year-over-year to $167.7 billion, surpassing consensus estimates by 3.3%. Moreover, its EPS of $1.68 grew 33.3% from the year-ago quarter and came in 26.3% ahead of analyst estimates. Yet, its shares plunged 8.3% in the following trading session.
Wall Street analysts are highly optimistic about AMZN’s stock, with a "Strong Buy" rating overall. Among 57 analysts covering the stock, 50 recommend "Strong Buy," six indicate "Moderate Buy," and one suggests a "Hold” rating. The mean price target for AMZN is $267.30, implying a 21.5% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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