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Amazon (AMZN) Q4 2021 earnings

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Andy Jassy (chief executive officer, Amazon.Com Inc.) speaks at the GeekWire Summit held in Seattle, Washington U.S.A, Tuesday, October 5, 2021.

Getty Images| Bloomberg | Getty Images

AmazonThe company will release its fourth-quarter results after the bell rings on Thursday.

This is what Wall Street wants:

  • Earnings per share:Refinitiv Survey of Analysts: $3.57
  • Revenue:According to an analyst survey by Refinitiv, $137.6 Billion
  • Revenue from AWS: $17.37 Billon, StreetAccount

Amazon has wrapped up an explosive earnings season for tech giants with mega-caps. NetflixShares were sold late last month, after investors became jittery about the subscriber outlook. Positive earnings Apple, MicrosoftGoogle parent AlphabetThe season may end on an optimistic note as recent reports suggest. FacebookIt revealed a stagnant user growth which led to its stock plummeting along with other social media stocks.

Amazon was one of the most prominent tech companies. worst performer last yearThe stock rose just 2.4%. The stock is down 16 percent so far in 2022 as investors exit the sector due to concerns over inflation and rising interest rate.

According to analysts, Amazon will record a year-over-year growth rate of less than 10% in the fourth quarter. This includes peak season sales. It would be the first time that Amazon has seen single-digit growth in the fourth quarter since 2017.

The profit will plummet from $19.09 per share to $3.68 in the last year to just $14.09 this year. The company is currently experiencing a decline in earnings and slow sales growth due to a combination of a pandemic-driven increase in ecommerce, constraints on global supply chains, and labor shortages.

Amazon has invested profits in physical expansion. Jefferies analysts predict that the company will open 350 more facilities by 2021. It also hiked wagesWorkers are lured to work at an average rate of $18 per hour. To increase incentive, has offered signing bonuses up to $3,000 in some markets.

Amazon was forced to send packages longer distances due to lack of labor to locations with sufficient staff.

Andy Jassy is the CEO of Amazon, succeeding Jeff Bezos last year. previously warnedDue to the headwinds, Amazon will have to take on additional costs of “several trillion dollars” in its fourth quarter. Amazon claimed that its operating profit might be as low as zero.

Wall Street will pay particular attention to Amazon’s guidance for the first quarter. Investors are trying to predict how much pressure Amazon expects to experience from rising inflation and shortages of supply.

Amazon has other areas of strength, such as the profitable cloud computing unit and rapidly-growing advertising. While core retail is still facing challenges, Amazon continues to look beyond it. An analyst expects Amazon Web Services revenue growth to be 36%, a significant increase from last year.

Guggenheim analysts sent a late-last month note to clients that stated that Amazon’s growth was similar to that of other ecommerce companies. They also expressed concern about the possibility that it will slow down into Q1, possibly Q2, and that there is uncertainty as to where normal growth rates might be. The focus of this week’s Q1 guidance is on Amazon. While the bar appears low, it will still be important to see any indications as to how sales or margins could be improved.

This is important breaking news. Keep checking back for more updates.

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