Amazon's Retail Sales Up 11%, Operating Income Rises 28%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Amazon's Operational Leverage: Amazon's retail sales grew by 11% last quarter, with operating income rising by 28%, indicating significant efficiency improvements driven by robotics and AI, thereby enhancing its competitive position in the market.
- Advertising Business Growth: Amazon's digital advertising platform has become one of the largest globally, with ad revenue increasing by 24% last quarter, which not only boosts overall profitability but also lays a solid foundation for future revenue growth.
- Chewy's Sales Growth: Online pet supply retailer Chewy has seen sales rise over 8% each quarter this year, while also enhancing customer loyalty and market share through a paid membership program and sponsored ads, showcasing strong business resilience.
- e.l.f. Brand Expansion: Cosmetics maker e.l.f. aims to expand its market share through the acquisition of the Rhode brand, with plans to drive robust revenue growth in the coming years by increasing brand awareness and distribution channels, particularly in international markets.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.71 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
40 Buy
3 Hold
0 Sell
Strong Buy
Current: 238.180
Low
250.00
Averages
294.71
High
340.00
Current: 238.180
Low
250.00
Averages
294.71
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
