Amazon.com Inc (NASDAQ:AMZN)
Consumer Discretionary - Internet & Catalog Retail | Reports July 28, After Market Closes.
Key Takeaway
- The Estimize consensus is looking for earnings per share of $1.21 on $29.90 billion in revenue, slightly higher than the Wall Street consensus
- Amazon’s ability to turn a profit was made easier by the widespread adoption of Amazon Web Services
- Amazon has been on a roller coaster ride to the top ever since turning a profit
If any company has done a better job at garnering attention than Facebook (NASDAQ:FB), it’s Amazon. The Jeff Bezos led company has been pushed to the top of investor’s lists after posting earnings growth for the first time in Q2 2015. Since then the stock is up nearly 70% while steadily making gains on the bottom line. Many experts now believe Amazon will become the first trillion dollar company and cross the $1000 per share threshold, at title previously believed to be Apple (NASDAQ:AAPL) or Alphabet Inc (NASDAQ:GOOGL).
The Estimize community is bullish heading on Amazon’s upcoming earnings report. Analysts are calling for earnings per share of $1.21, up 526% from the same period last year. That estimate has risen 5% since its last report in April. Revenue for the period is expected to have increased 30% to $29.90 billion, marking another quarter of significant gains. 
Amazon’s turn to profitability has been largely driven by the success of Amazon Web Services. AWS is the preeminent leader in cloud space, hosting many of the world’s largest websites including Netflix (NASDAQ:NFLX), Expedia (NASDAQ:EXPE) and Verizon Wireless. The company also continues to make headlines as Jeff Bezos opens up about his long term goals for the company. Amazon is already working on making Alexa recognize emotions and just invested north of $3 billion to begin operating in India.
Its core services are also performing remarkably well. Amazon is fresh off Prime Day, the company’s Black Friday type event hosted every summer. Early indications suggest the day generated the largest amount of sales in the company’s history. Those sales, however, will likely reflect future guidance and will only be mentioned during the analyst call.
As for second quarter earnings, Prime subscriptions will likely garner the most attention. Memberships have been growing at over 50% in the last two years and with new countries like India gaining access, it doesn’t seem to be slowing down yet. Amazon is also testing its resilience delivering groceries. This was the leg up Walmart (NYSE:WMT) had on Amazon, but that very well may not be the case anymore.
Since turning a profit, Amazon has been one of the fastest growing companies. Its prowess for innovation and efficiency on top of the remarkable success of Amazon Web Services has propelled the company in line with Apple, Google (NASDAQ:GOOGL), and Facebook.
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