Amazon earnings next week will include focus on job cuts, macro pressures and chip development
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Amazon (NASDAQ:AMZN) is in the spotlight with the e-commerce giant due to report earnings on April 27.
JPMorgan has a favorable view on the 2023 setup and called the stock one of top tech sector picks.
The firm models Q1 sales of $122.5B vs. $124.6B consensus and AMZNâs $121B to $126B guidance range. JPMorgan estimates Q1 operating income for Amazon of $2.8B, slightly above the midpoint of management's $0B to $4B guidance range.
"Weâre confident AMZN can expand operating margins in 2023, driven primarily by Retail improvement, & weâre encouraged by N.America OI margin of ~2.0% in 4Q ex-restructuring charges. We also believe AMZN is taking meaningful steps to control costs." Part of the cost-controlling efforts by Amazon (AMZN) has been widespread job reductions. Job cut announcements have rolled in all year, including new reports on Friday of hundreds of corporate job cuts at the Whole Foods business.
Shares of Amazon (AMZN) rose 1.52% on Friday in the premarket session and are up more than 8% over the last three weeks as investors show some confidence ahead of earnings day. A wildcard with the earnings conference call on April 27 could be an update from the company on its new chips.
Read the latest breakdowns on Amazon from Seeking Alpha analysts.