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Amazon (AMZN) Q1 2022 earnings


AmazonThe bell will sound on Thursday and the earnings for the first quarter will be released.

Here are the expectations of Wall Street:

  • Earnings: According to Refinitiv, $8.36 per Share
  • Revenue: Refinitiv estimates $116.3 billion

These are other important revenue figures:

  • Amazon ServicesAccording to StreetAccount, $18.27 Billion is expected
  • Advertising: According to StreetAccount, $8.17 Billion is expected

Amazon AppleOn Thursday, a report from reflects on results by. Investors are not updated on the progress of this year’s Big Tech Class. It’s been mixed so far, with many ad-supported companies struggling because of macroeconomic conditions as well as the conflict in Ukraine.

On Wednesday, Facebook parent MetaExceeded all expectations earningsdaily active users and revenue, however they missed the mark on revenues and provided weak guidance. The following day, Google missedboth the top and bottom line. Both businesses stated that inflation was a major issue as well as the increased competition.

Amazon started disclosingAdvertising revenue was disclosed for the first-time in its fourth quarter report. It revealed a $31 million annual online advertising business. Analysts anticipate 29% growth in the first quarter. This is faster than what Facebook and Google experienced during that period for ad revenue.

Amazon is forecasting that its total revenue will have increased 7.2%. This would be the lowest quarterly growth rate since 2001’s dot-com bust and mark the second consecutive period of low-growth. Amazon is also facing slowing e-commerce momentum due to the reopening of physical stores.

Analysts predict that growth will pick back up during the second quarter. Refinitiv reports that analysts are predicting an expansion of 11%-125.6 billion.

Amazon’s search results, which include e-commerce, advertising and other metrics, will provide insight into how Amazon is dealing with a variety of economic problems, such as rising inflation and higher fuel costs and labor costs. They also show how Amazon navigates global supply chains snarls and ongoing pandemics.

Amazon has worked to offset many of the costs. It began this month by announcing that it would be reducing many of these costs. introduced a 5% surchargeThe first ever such fee was charged to some U.S.-based sellers. Amazon also announced the completion of its third quarter. hiked the priceIts U.S. Prime Membership for the First Time in Four Years to $139 From $119

Amazon faces rising labor costs. This is especially true for workers in its Staten Island warehouses. voted in the company’s first U.S. unionThis month, earlier. Another election is underwayAt a second Staten Island warehouse labor organizers expressed interest in additional Amazon facilities. Amazon has challenged the victory of the union by claiming that it was influenced by the National Labor Relations Board and the union.

Amazon shares have fallen 14% this year while Nasdaq’s has declined 18%. Amazon was number one in 2021. worst-performing Big Tech stockGaining just 2.4%

Michael Pachter, an analyst at Wedbush Securities, remains bullish because consumers still rely on Amazon to purchase so many products, such as groceries.

Pachter wrote last week that the share recommendation to buy the shares was made because of the 5% surcharge. Due to strong consumer spending, inflation was not a major contributor to Q1’s revenue.

Amazon’s cloud computing segment may continue to shine for the company. Amazon Web Services revenue is expected to have increased 36% over the previous year. Cloud peers MicrosoftAnalysts had high expectations of Google and Google for cloud business this week.

Amazon will invest in an electric vehicle manufacturer, which investors will be key to. RivianThis produced almost $12 billion gainIn the fourth quarter, the company hosted its IPOand its stock pro. These shares saw a drastic change in their fortunes, with the stock losing 50% as of March 31, plus more every year since.

On Wednesday, FordRivian’s 12% stake suffered a loss in the amount of $5.4Billion. FactSet reports that Amazon controls close to 18%.

This is a developing story. Stay tuned for new updates.

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