The big tech giant Amazon (AMZN) will release its Q4 2024 financial results on February 6. Shares of AMZN have gained 48% over the past year, driven by strength in its cloud segment, Amazon Web Services (AWS), growth in its ad revenues, and cost-cutting initiatives. Wall Street analysts expect the company to report earnings per share of $1.48, higher than the prior-year period figure of $1 per share.
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Meanwhile, revenues are expected to reach $187.4 billion, up 10% year-over-year, according to data from the TipRanks Forecast page below. As Q4 approaches, it’s worth noting that Amazon has surpassed consensus EPS estimates in the past seven consecutive quarters.
Analysts’ Views on AMZN Ahead of Q4 Results
Ahead of AMZN’s Q4 results, all analysts gave a Buy rating except Ken Gawrelski of Wells Fargo, who rated it Hold.
Among the bullish analysts, Deepak Mathivanan of Cantor Fitzgerald highlights AMZN as the top mega-cap pick heading into 4Q, with potential upside in key metrics. The analyst believes that the company is well-positioned for gains in 2025, driven by steady AWS acceleration and retail margin expansion. He further added that in retail, fixed cost leverage should help boost the company’s margins.
Similarly, Justin Post of Bank of America Securities maintains a Buy rating, citing Amazon’s strong growth in AWS and retail margins. The analyst believes that AI-driven AWS demand, robotics-led productivity gains, and Prime Video ad growth, among others, remain key catalysts going forward. Post added that though risks like potential new tariffs and high AWS expectations exist, the overall outlook remains favorable.
Website Traffic Data Shows Mixed Trend
TipRanks’ Website Traffic Tool offers information on how a company’s website domain performed over a specific time frame.
For AMZN, TipRanks’ website traffic screener reveals that the traffic increased sequentially but decreased from the year-ago quarter in Q4. According to the tool, the number of visits to amazon.com decreased by 20.27% year-over-year. The decline in the visits could be due to increasing competition from other players like Microsoft (MSFT) and Alphabet (GOOGL).
However, website traffic increased 11.56% on a sequential basis.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 7.20% move in either direction.
Is AMZN a Good Stock to Buy Before Earnings?
Wall Street is bullish on Amazon stock. 49 out of the 50 Wall Street analysts who recently rated the stock gave it a Buy, forming a Strong Buy consensus rating. The average AMZN stock price target is $255.47 per share, suggesting an upside potential of 7.27%.
