Amazon (AMZN) Expected to Perform Well in Q2 Earnings, Price Target Set at $315

In a week inundated by major earnings, Amazon (AMZN) is set to release second quarter earnings, and investment firms are predicting incredibly high price targets.

The Evercore ISI firm classified Amazon stock as one that will outperform the market average, and they set the 12-month price target at $315. Amazon stock is currently trading at $233, up 0.70% from the previous day.

Amazon is scheduled to report Q2 earnings at the end of the week on Friday, after the market closes for the day. Their revenue for the quarter is expected to come in around $197 billion with earnings per share of $1.81. They might beat estimates since their AWS (Amazon Web Services) grew by around 32% according to industry estimates.

Major Growth Anticipated for Amazon

Even if Amazon revenue and EPS figures release in line with Wall Street estimates, that would mean tremendous growth for the already massive company. The current revenue estimates figure growth of about 17% year-over-year. The quarterly growth is estimated at about 9%.

In the past year, Amazon revenue increased by 14%, so they are already on track to continue growing. The company is keeping their momentum going and is pushing hard to improve their Web Services that generate more revenue for them through cloud computing and digital storage. They have grabbed ahold of both the growing online commerce marketplace and the AI-focused data storage sector  and are out in front on both of these fields.

Analysts say that Amazon stock is currently undervalued. It could be trading for much higher, if there was less pressure from the Iran conflict, if gas prices were higher, or if there were fewer inflation worries. As those factors fluctuate, Amazon stock could climb.

The quarterly report is a good opportunity for Amazon stock to shine as well, since the report puts Amazon growth out into the public eye for investors to see. If the company has been performing well, then Amazon could see their stock shoot up as investors take a second look at the company through the lens of quarterly reports.

Amazon had one last sales push before their earnings call, and that was Prime Day. This took place on July 12th, and estimates say that the company generated around $7 billion in revenue for the event. That could give them a bigger revenue bump than expected at the end of the week as they report quarterly earnings.

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Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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