Amazon Stock FY2024 Q1 Third-party Analysts' Forecast & Preview

In 2024, Amazon's stock has continued its strong performance, hitting a new record high closing price on April 11, 2024. Investor's Business Daily states that Amazon stock closed at $189.05 on that date, marking the company's first record close since July 2021. This represents a full recovery for Amazon's shares after a nearly 50% decline in 2022.

Investor's Business Daily indicates that Wall Street analysts are bullish on Amazon's outlook, with 95% of the 61 analysts covering the stock maintaining a "buy" rating. On average, these analysts have set a 12-month price target of $210 for Amazon's stock, implying around 15% upside from the April 11 closing price.

Amazon's strong 2024 performance has been driven by several factors. The company's fourth-quarter 2023 earnings report in February 2024 exceeded expectations, with a 14% year-over-year revenue increase and a surge in earnings per share. Additionally, Amazon's push into generative AI, including its investment in Anthropic, has been well-received by analysts who see this as a key growth opportunity.

However, Investor's Business Daily also notes that Amazon faces some headwinds, including increased competition in e-commerce from rivals like Walmart and Target, as well as a major antitrust lawsuit filed by the Federal Trade Commission. Nevertheless, the overall sentiment appears to be that Amazon's stock remains a buy, with the potential for further gains in 2024 based on the company's strong fundamentals and strategic initiatives.

Part 2：Amazon FY2023 Q4 Earnings Report Recap

1. Amazon Key Indicators and Historical Earnings Report

• - Amazon FY2023 Q4 EPS was $1.00, YOY +3233.33%
• - Amazon PE Ratio today is 61.80 
• - Amazon FY2023 Q4 Revenue was $170B, YOY +13.91% 
• - Amazon FY2023 Q4 FCF was $27.9B, YOY +121.58%
• - Amazon FY2023 Q4 Current Ratio was 1.05, YOY +10.63% 
• - Amazon FY2023 Q4 ROA was 2.09%, YOY +3255.61%
• - Amazon FY2023 Q4 ROE was 5.52%, YOY +2715.45%
• - Amazon FY2023 Q4 Gross Margin was 17.22%, YOY +30.81% 
• - Amazon FY2023 Q4 Net Margin was 6.25%, YOY +3254.86%

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 Q4 Financial Statement Analysis

Amazon reported strong financial results for the fourth quarter of 2023. Here are some of the key highlights:

Revenue Growth
● Amazon's net sales increased 14% to $170.0 billion in Q4 2023, compared to $149.2 billion in Q4 2022.
● For the full year 2023, net sales increased 12% to $574.8 billion, compared to $514.0 billion in 2022.
● The North America segment saw a 13% year-over-year increase in net sales in both Q4 and the full year.
● The International segment had a 17% year-over-year increase in net sales in Q4 and an 11% increase for the full year.
● AWS segment net sales grew 13% year-over-year in both Q4 and the full year.

Profitability
● Operating income increased to $13.2 billion in Q4 2023, compared to $2.7 billion in Q4 2022.
● For the full year, operating income increased to $36.9 billion, up from $12.2 billion in 2022.
● Net income was $10.6 billion in Q4 2023, compared to $0.3 billion in Q4 2022.
● Full-year net income was $30.4 billion, a significant improvement from the $2.7 billion net loss in 2022.

Cash Flow and Liquidity
● Operating cash flow increased 82% to $84.9 billion for the trailing twelve months.
● Free cash flow improved to an inflow of $36.8 billion for the trailing twelve months, compared to an outflow of $11.6 billion in the prior period.
● Free cash flow less principal repayments of finance leases and financing obligations improved to an inflow of $32.2 billion, compared to an outflow of $19.8 billion in the prior period.

Other Highlights
● Amazon held a record-breaking Black Friday and Cyber Monday holiday shopping event, with customers worldwide purchasing more than 1 billion items.
● The company continued to expand its delivery capabilities, with more than 7 billion units arriving same or next day to Prime members globally.
● Amazon announced new partnerships, product launches, and investments in areas like generative AI, cloud services, and renewable energy.

Overall, Amazon's Q4 2023 and full-year 2023 results demonstrate strong revenue growth, improved profitability, and healthy cash flow generation across its business segments.

3. Amazon FY2023 Q4 Segment Data Performance

North America Segment
● Net sales increased 13% year-over-year to $105.5 billion in Q4 2023 and 12% to $352.8 billion for the full year 2023.
● Operating income was $6.5 billion in Q4 2023, compared to an operating loss of $0.2 billion in Q4 2022.
● Full year operating income was $14.9 billion, compared to an operating loss of $2.8 billion in 2022.

International Segment
● Net sales increased 17% year-over-year to $40.2 billion in Q4 2023 and 11% to $131.2 billion for the full year.
● Operating loss decreased from $2.2 billion in Q4 2022 to $0.4 billion in Q4 2023.
● Full year operating loss improved from $7.7 billion in 2022 to $2.7 billion in 2023.

AWS Segment
● Net sales grew 13% year-over-year to $24.2 billion in Q4 2023 and 13% to $90.8 billion for the full year.
● Operating income increased from $5.2 billion in Q4 2022 to $7.2 billion in Q4 2023.
● Full year operating income rose from $22.8 billion in 2022 to $24.6 billion in 2023.

Product and Service Categories
● Online Stores: Net sales of $70,543 million in Q4 2023, increased 9% year-over-year.
● Physical Stores: Net sales of $5,152 million in Q4 2023, grew 4% year-over-year.
● Third-Party Seller Services: Net sales of $43,559 million in Q4 2023, increased 20% year-over-year.
● Advertising Services: Net sales of $14,654 million in Q4 2023, grew 27% year-over-year.
● Subscription Services: Net sales of $10,488 million in Q4 2023, increased 14% year-over-year.

Part 3：Amazon FY2024 Q1 Earnings Report Forecast & Preview

1. Amazon FY2024 Q1 Forecast By Third Party Analyst Rating, April 19th

Amazon earnings date is coming soon! Following an extensive evaluation of Tesla's financial data, revenue, and stock trends over the last few quarters by more than 45 third-party financial analysts, AMZN Stock has been given a Strong Buy rating. Analysts forecast an average stock price of $211.900 (Average) for the next 12 months.

- Third Party Analyst rating: Strong Buy

- Amazon Price Target: $211.900

- FY2024 Q1 EPS Forecast: $0.831

- FY2024 Q1 Revenue Forecast: $142.6B

- FY2024 Q1 EBIT Forecast: $10.9B

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, April 19th, 2024

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

Interpretation of technical indicators >>

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