Key Highlights:
- Amazon's first-quarter performance exceeded expectations with substantial revenue and operating income figures.
- Cautious guidance for the next quarter caused post-market declines despite strong results.
- Analysts maintain an optimistic price target, indicating potential upside.
Amazon.com Inc. (AMZN, Financial) recently reported its first-quarter earnings, showcasing impressive results that, nonetheless, prompted a 3.6% decline in share value during postmarket trading. Despite surpassing Wall Street forecasts with a revenue of $155.7 billion and operating income of $18.4 billion, Amazon's conservative guidance for the upcoming quarter seems to have stirred investor concerns. The company's cloud segment, Amazon Web Services (AWS), delivered $29.3 billion in revenue, slightly missing expectations.
Wall Street Analysts Forecast
Looking ahead, Wall Street analysts exhibit confidence in Amazon's potential. The average price target projected by 67 analysts stands at $245.94, suggesting a considerable upside of 29.31% from the current share price of $190.20. Expectations range from a high estimate of $295.46 to a low of $195.00, reflecting varying degrees of optimism about Amazon's future performance. For more in-depth projections, visit the Amazon.com Inc (AMZN, Financial) Forecast page.
Furthermore, 73 brokerage firms collectively endorse Amazon with an average recommendation of 1.8, which translates to an "Outperform" rating. This recommendation scale categorizes 1 as a Strong Buy and 5 as a Sell, demonstrating strong market confidence in Amazon's continued success.
From a valuation perspective, GuruFocus estimates Amazon's GF Value at $184.80, indicating a minor potential downside of 2.84% from its current trading price. The GF Value represents GuruFocus' assessment of Amazon's fair trading price, derived from the company's historical trading multiples, past growth, and projected future performance. For comprehensive valuation data, refer to the Amazon.com Inc (AMZN, Financial) Summary page.
