Shares of e-commerce giant Amazon (NASDAQ:AMZN) gained in after-hours trading after the firm reported its Q1 results. Earnings per share came in at $0.98, which beat analysts’ consensus estimate of $0.84 per share. Sales increased by 13% year-over-year, with revenue hitting $143.3 billion. This beat analysts’ expectations of $142.5 billion.
The various segments of the company witnessed notable growth over the past year. North America’s sales climbed to $86.3 billion, which was a 12% increase from the previous year. In the International segment, sales reached $31.9 billion, a year-over-year growth of 10%. Additionally, the AWS segment experienced a 17% increase in sales, which equaled a total of $25 billion.
Interestingly, a quick look at Amazon’s website traffic would’ve predicted its impressive year-over-year growth. In fact, website traffic in Q1 2024 significantly outperformed the comparison period from 2023 (the grey line).
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Looking forward, management now expects revenue and operating income for Q2 2024 to be in the ranges of $144.0 billion to $149 billion and $10 billion to $14 billion, respectively. For reference, analysts were expecting $150.1 billion in revenue.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 42 Buys assigned in the past three months, as indicated by the graphic below. After a 76% rally in its share price over the past year, the average AMZN price target of $213.74 per share implies 18.8% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
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