Following the release of Amazon's Q3 2023 earnings report, the company's stock soared by 5%. And it seems the tech giant's growth is far from slowing down. Let's delve into the factors that may further propel a stock that has already increased by 50% this year.
Amazon recently unveiled its Q3 2023 earnings, which exceeded expectations, marking a significant turnaround from the previous months' negative trend. The chart below graphically illustrates this upturn. For those interested in exploring post-earnings trading opportunities in more detail, an advanced stock earnings calendar offers comprehensive data on reports from both major and minor companies.
Despite Amazon facing challenges in the stock market over the past few months, it has seen an overall growth of around 55%.
This performance can be compared with the S&P 500 index and the FAANG tech giants. Amazon has outperformed the former and remained on par with the latter in terms of average performance.
Amazon's Q3 revenue surpassed analyst estimates, reaching $143.08 billion compared to the expected $141.5 billion, a 1.12% increase. The earnings per share are even more impressive – $0.94 against $0.59, marking a 60% increase. Additionally, the company reported a colossal profit of $9.9 billion, more than triple from a year ago.
One of Amazon's undeniable strengths is its development in two significant areas. One of them is the scope of artificial intelligence. In the case of Amazon, it's not some promises for the distant future but an active implementation of AI technologies through Amazon Web Services (AWS). Moreover, the company also offers an AI platform named Bedrock.
The other area is online shopping, of course. Here is a simple logical chain. Amazon harnesses regional shipment capabilities instead of relying solely on national ones. This approach reduces delivery times by storing goods closer to potential customers. While it may not be a game-changer for ordering items like sneakers, it becomes crucial for essential goods such as canned tuna or toilet paper. This strategy allows Amazon to succeed in essential goods sales.
Most analysts believe that Amazon still has room for growth. A consensus forecast predicts a 32% increase over the next 12 months, along with a "Strong Buy" rating. It's important to remember that expert opinions are not equivalent to an actual yield. Market conditions can change rapidly. Therefore, every new trading opportunity requires thorough individual research and assessment.
