Amazon’s stock experienced a significant increase on Friday as Wall Street analysts raised their price targets following the company’s latest quarterly results. In premarket trading, Amazon shares surged by 6.5% after reporting earnings of $1 per share on $170 billion in revenue, surpassing analysts’ expectations.
The impressive performance can be attributed to the strong growth of Amazon’s core e-commerce business and its continued success in advertising. Additionally, the company’s cloud computing segment, Amazon Web Services, exceeded analysts’ estimates. The positive outlook provided by Amazon, projecting revenue between $138 billion and $143.5 billion for the current quarter, further bolstered investor confidence.
Analyst Mark Shmulik from Bernstein expressed his enthusiasm for Amazon’s earnings, stating that every number mentioned in the press release looked promising. Aaron Kessler of Seaport Research also shared positive sentiments, pointing out that the company achieved solid operating income growth due to increased efficiency in fulfillment, AWS, and advertising.
In response to the impressive earnings report, several Wall Street analysts have revised their price targets for Amazon. A survey conducted by FactSet revealed that 20 analysts raised their forecasts for the stock. Currently, Amazon has an average rating of Buy from brokers polled by FactSet, with an average target price suggesting over 20% upside potential.
Kathleen Brooker, research director at broker XTB, commended Amazon’s performance across its different business segments, emphasizing that the results demonstrate the company’s profitability throughout Q4 and beyond.
Overall, Amazon’s strong earnings report has instilled confidence in investors and reaffirms the company’s position as a leading player in various industries.