Will Amazon’s quarterly report be able to meet Wall Street’s expectations?

A week later, on July 28, the Internet giant Amazon.com Inc. (AMZN) will report for the second quarter. Wall Street has no clear opinion about what the company will show. Last quarter, the American e-commerce leader did not meet profit expectations, and this quarter, record inflation continues to affect the company’s activities. 

On Wall Street, the macroeconomic environment will have a noticeable impact on Amazon sales. So far, the company has not lost much due to inflation but can sharply reduce not the main expenses of Americans in the event of a more severe threat of recession. It is worth adding that Amazon will face a difficult comparison in the second quarter of 2022, as e-commerce overgrew last year. Another negative factor will be the postponement of the Prime Day discount day from the second to the third quarter. 

People are also worried that a stronger dollar will hurt Amazon’s earnings from foreign exchange. According to the forecast of Amazon management, revenue in the second quarter will grow by about 3-7% year-on-year. Wall Street forecasts growth of about 5.5%. At the same time, Amazon itself does not give profit forecasts, indicating only expectations for operational results. Management expects the operating result to be between an operating loss of $1 billion and an operating income of $3 billion. The company had an operating profit of $7.7 billion in the second quarter of last year.

Recall that Amazon analysts published a forecast for the second quarter below Wall Street expectations. Therefore, it is understandable that specialists pay special attention to the estimates the company is preparing for the third quarter. The e-commerce giant to get a substantial boost from Prime Day. Analysts predict that in the third quarter, Amazon’s revenue will increase by 15% year-on-year, and earnings per share will grow by 16%.