Amazon share price: what to expect from Q1 results
21 Apr 2019
Though the online retail giant had record profits in Q4 2018, Amazon’s Q1 revenue was projected to be between $56-$60 billion. That’s less than the $60.8 billion expected from Wall Street. The company offered weak guidance for Amazon’s Q1 profits because of higher wages for workers, expansion of cloud services, and opening of grocery stores. Amazon’s operating income is projected to be between $2.3-$3.3 billion, a surge of 21-74% year-over-year.
Amazon chief executive officer,(CEO), Jeff Bezos, spoke about how he wants Amazon to revolutionise grocery shopping in the US with Amazon Go cashierless stores.
‘We represent a low single-digit percentage of the retail market, and there are much larger retailers in every country where we operate. And that’s largely because nearly 90% of retail remains offline, in brick and mortar stores. With Amazon Go, we had a clear vision. Get rid of the worst thing about physical retail: checkout lines. No one likes to wait in line. Instead, we imagined a store where you could walk in, pick up what you wanted, and leave,’ said Bezos.
How to trade Amazon Q1 results
Even though Amazon’s Q1 earnings guidance fell below Wall Street expectations, analysts like Zack’s Equity Research still consider Amazon stock a buy. Amazon share price has survived the bad publicity of Bezos’ recent divorce, so financial experts predict that Amazon’s Q1 revenue will continue to be strong on the strength of its online sales and Amazon Web Services.
By Nyandabeh Ella Vincent