Amazon.com, Inc. (NASDAQ:AMZN) Ticks Higher Before Earnings Day
Amazon.com, Inc. (NASDAQ:AMZN) shares are gaining with the broader market as the company is all set to report its first quarter earnings tomorrow after the closing bell.
Analysts are estimating the company to report a profit of 8 cents a share, down significantly from a year ago profit of 44 cents a share. However, revenue during the latest quarter is projected to rise by 30.90% to $12.90 from a year ago revenue of $9.86 billion.
The recent quarterly earnings is expected as a results of company’s significant spending on retail, marketing, media and new technology operations under a spend-to-grow strategy.
However, there are few analysts who are guessing the company may reported below consensus ws as the cost of investing in new fulfillment centers, emerging technologies like cloud computing services, its Kindle e-reader and other efforts keeps weighing on its bottom line.
J.P. Morgan analyst Doug Anmuth expects an in-line Q1 from Amazon, with modest Q2 guidance on tough comparisons with year-earlier results. The firm has an overweight, or buy, rating on the stock, and a price target of 210.
Earlier this week, Targeting the business, scientific and commercial customers in the market, Amazon.com launched a website. The website was launched with the aim of providing more than a half-million items including tools, lab, and office equipment for business and industrial customers.
AmazonSupply.com, which started as an online bookstore and repeatedly expanded to provide all kinds of consumer products from socks to gardening tools to appliances, enables its end-users to seek categories such as fasteners, power transmission equipment and vehicle maintenance supplies.
Shares of AMZN have jumped about 12 so far this year. Over the past one year, the stock is up over 5.50%.