For the quarter, Amazon posted gross sales of $108.5 billion, up 44% from a 12 months in the past and forward of the corporate’s guidance range of $100 billion to $106 billion—the very best development for any Amazon quarter in 10 years. Profits have been $15.79 a share, greater than triple the $5.01 a share reported a 12 months in the past, and beating the Street consensus view by 66%.
Amazon beat expectations in all of its most vital companies. The core shops enterprise was up 40%, with third-party vendor companies up 60%. Amazon Web Services income accelerated to 32% development from 28% within the December quarter. Advertising income, labeled as “other,” continued to speed up, rising 73% within the quarter – development within the class has ratched up from 41% within the June quarter, to 49% in September and then 64% in December.
While the inventory is up solely modestly amid a broad market selloff on Friday, analysts this morning rushed to spice up their worth targets and revenue estimates, and the day’s batch of post-earnings analysis notes have been universally upbeat.
Evercore ISI analyst
writes that Amazon reported “a clean beat and raise quarter, with very powerful fundamentals … revenue growth at massive scale marked no major deceleration despite a tougher comp and with record-high 9% operating margins.”
Mahaney notes that Amazon shares have been range-bound for over six months, after an 80% surge in mid-2020. “We believe these results prove that Amazon is emerging from Covid structurally stronger and that Amazon shares deserve to re-rate,” he writes, asserting that the inventory may rally 25% or extra over the subsequent 12 months. Mahaney repeated his Outperform ranking, elevating his goal to $4,500, from $4,000.
Morgan Stanley analyst
repeats his Overweight ranking whereas upping his goal worth to $4,500, from $4,200. “Overall e-commerce trends are holding up better than expected, with Amazon talking about grocery numbers rising pre- and post-pandemic and the fact that they are still seeing strong engagement internationally,” he writes.
BofA Global Research analyst Justin Post reiterates his Buy ranking, whereas lifting his goal to $4,360, from $4,150, declaring Amazon “the one to own in e-commerce.” Post says the sturdy outcomes and outlook means that Amazon’s 2021 revenues “could hold up better than peers,” and he provides that acceleration in AWS “will be a key stock driver in 2021. “He thinks the stock could move beyond his current target if regulatory pressures fade.
Canaccord Genuity analyst Michael Graham writes in a research note that the big question for Amazon shares is whether gains in e-commerce will persist and power through difficult comparisons in the next few quarters. But he adds that with the S&P’s return about triple that of Amazon shares over the last six months, “the market may have already priced in a potential deceleration … leaving room for the stock to work nicely from here.” He repeats his Buy ranking, and ups his goal to $4,400, from $4,100.
Amazon shares are up 1.3%, to $3,515.18; earlier within the session the inventory traded as excessive as $3,553.39, a brand new all time intraday excessive.
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