Amazon Stock FY2023 Q3 Third-party Analysts' Forecast & Preview

After a brutal 2022, Amazon stock staged a strong recovery in 2023 as investors became more optimistic about the company's future growth prospects. While revenue growth remained muted compared to previous years, Amazon focused more intently on improving profitability through cost-cutting measures and optimizing its fulfillment infrastructure. The company's high-margin businesses like AWS and advertising showed resilience amidst the economic uncertainty.

As macroeconomic headwinds subsided, Amazon's stock price steadily climbed higher throughout the year, regaining much of the ground it lost in 2022. Analysts turned broadly positive on the stock again, praising Amazon's efforts to control costs and drive efficiencies. The outside analysts expect operating margins and free cash flows to improve significantly in 2023 and over the next few years.

Overall, 2023 marked a transitional period for Amazon as it shifted from heavy investment mode into prioritizing profits and cash flow generation. Though revenue growth slowed, Amazon made important strides in setting up its operations for improved profitability in the coming years. The company's stock reflected this transition, recovering robustly from its 2022 lows on optimism about Amazon's future earnings potential.

Source: Amazon stock forecast and price prediction (www.usatoday.com) >>

Part 2：Amazon FY2023 Q2 Earnings Report Recap

1. Amazon Key Indicators and Historical Earnings Report

• - Amazon FY2023 Q2 EPS was $0.65, YOY -425.00%
• - Amazon PE Ratio today is -- 
• - Amazon FY2023 Q2 Revenue was $134.4B, YOY +10.85% 
• - Amazon FY2023 Q2 FCF was $5B, YOY -174.29%
• - Amazon FY2023 Q2 Current Ratio was 0.95, YOY -0.54% 
• - Amazon FY2023 Q2 ROA was 1.43%, YOY -393.43%
• - Amazon FY2023 Q2 ROE was 4.18%, YOY -373.39%
• - Amazon FY2023 Q2 Gross Margin was 16.20%, YOY +19.81% 
• - Amazon FY2023 Q2 Net Margin was 5.02%, YOY -400.27%

For more information, such as definitions and explanations of the above technical terms, please view:

Interpretation of Key Indicators >>

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2. Amazon FY2023 Q2 Financial Statement Analysis

• Amazon reported strong financial results for the second quarter of 2023. Here are some of the key highlights:
•  
• Key Takeaways
  - Amazon demonstrated resilient top line growth despite macroeconomic challenges. Profitability rebounded on operating leverage.
• - Strong cash flows reflect Amazon's earnings power and ability to self-fund growth.
• - The results highlight Amazon's solid business fundamentals and diversified revenue streams across retail, advertising and cloud.
•  
• Revenue Growth
  ● Total net sales increased 11% year-over-year to $134.4 billion, excluding negative foreign exchange impacts. This growth was driven by increases in all major business segments.
• ● North America and International segments grew 11% each. AWS segment revenue was up 12%.
•  
• Profitability
  ● Operating income increased significantly to $7.7 billion, up from $3.3 billion in Q2 2022. This was driven by higher revenue and moderating cost growth.
  ● Net income was $6.8 billion or $0.65 per diluted share, a big improvement from the net loss of $2 billion in Q2 2022.
•  

• Cash Flows
  ● Operating cash flow for the trailing twelve months increased 74% to $61.8 billion, driven by earnings growth.

• ● Free cash flow turned positive to an inflow of $7.9 billion, compared to an outflow of $23.5 billion in Q2 2022.

•  
• Segment Performance
  ● North America operating margin expanded from -0.8% to 3.9%, driven by revenue growth and productivity gains.
  ● International losses narrowed with improved cost control and higher sales.
  ● AWS margins declined slightly but remains highly profitable at 24.2% of segment revenue.

Source: Amazon.com Announces Second Quarter Results (ir.aboutamazon.com) >>

3. Amazon FY2023 Q2 Online Stores and AWS Cloud Service

Online Stores

Amazon reported that net sales for its online stores segment were $52.966 billion in Q2 2023, up 5% excluding foreign exchange impact compared to Q2 2022. This growth was likely driven by Amazon's continued investments in expanding selection, providing fast delivery for Prime members, and enhancing the overall customer experience.

Some notable initiatives highlighted for Q2 2023 included:

● Expanding selection in areas like beauty, fashion, grocery and more through new partnerships and brands.
● Delivering the fastest Prime shipping speeds ever in the U.S., with more than half of member orders arriving in one day or faster.
● Holding the largest Prime Day event ever, enabling significant sales for Amazon's own retail business.

While online store growth decelerated slightly from Q1, Amazon appeared to maintain strong momentum in e-commerce through selection, convenience and value for customers. Execution of Prime Day and new partnerships to enhance selection likely helped spur further online sales.

AWS Cloud Services

AWS net sales grew 12% year-over-year to $22.14 billion in Q2 2023, down from 16% growth last quarter. Growth may have moderated as customers shifted from cost optimization back to deploying new workloads on AWS.

AWS continued to see strong adoption across major companies and industries highlighted by new commitments from customers like BBVA, Philips, HSBC and more. The segment also launched new capabilities around data lakes, anomaly detection, generative AI and more to improve the customer experience.

While growth decelerated, AWS maintained double digit gains and its leadership in cloud services. The slower growth this quarter was likely impacted by macro conditions, but the segment continues innovating at a rapid pace to drive future growth.

Source: Amazon.com Announces Second Quarter Results (ir.aboutamazon.com) >>

Part 3：Amazon FY2023 Q3 Earnings Report Forecast & Preview

1. Amazon FY2023 Q3 Forecast By Third Party Analyst Rating, September 26th

Following an extensive evaluation of Tesla's financial data, revenue, and stock trends over the last few quarters by more than 43 third-party financial analysts, AMZN Stock has been given a Strong Buy rating. Analysts forecast an average stock price of $176.360 (Average) for the next 12 months.

- Third Party Analyst rating: Strong Buy

- Amazon Price Target: $176.360

- Forecast of FY2023 Q3 EPS: $0.578

- Forecast of FY2023 Q3 Revenue: $141.6B

- Forecast of FY2023 Q3 EBIT: $7.6B

Source: https://www.benzinga.com/quote/META/analyst-ratings

For more information on what the analyst ratings may mean, visit https://pro.benzinga.com/blog/what-do-stock-analyst-ratings-mean/ (Benzinga is not affiliated with Moomoo Technologies Inc., Moomoo Financial Inc., or its affiliates.)

2. Amazon Forecast By Technical Analysis, September 26th, 2023

For more information, such as definitions and explanations of the above technical terms, please view: 

Interpretation of technical indicators >>

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