Amazon: Holiday Season Record Sales To Drive Q4 Consensus Higher
Summary:
- Amazon’s 3Q FY2024 earnings report indicated an improvement in retail sales but provided a muted 4Q revenue outlook, factoring in unfavorable currency headwinds.
- Last week, the company saw the strongest holiday season sales in years, driven by early promotions before Thanksgiving and same-day delivery services.
- I anticipate strong sales extending into the Christmas and New Year holiday season, which should further boost 4Q revenue estimates.
- AWS’ growth momentum remains robust, with sequential growth acceleration and margin expansion in 3Q, supported by elevated capital investments in GenAI infrastructure.
- Despite the recent rally, the stock still appears cheap relative to its earnings growth history, currently trading at 0.34x PEG GAAP TTM.
What Happened
Amazon (NASDAQ:AMZN) rallied more than 20% since the 3Q FY2024 earnings report. I believe the recent rally reflects improvements in the company’s revenue consensus in 4Q, and I think the stock still has upside
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