Amazon (AMZN) plans to report second quarter revenue this week along with other major tech companies, with Wall Street high expectations. Bank of America has issued a new client note detailing some key metrics to watch out for from the e-commerce giant’s revenue report.
Amazon is driven by the retail and digital advertising sectors, and is driving a strategic move into the AI wearables market with the acquisition of Bee. Analysts say Amazon’s revenues have increased by 14%, significantly contributing to the overall growth of seven spectacular high-tech companies this quarter. Additionally, analysts have a positive outlook on Amazon, with most price targets suggesting growth following the report.
According to Bank of America, there are several views that could dictate where AMZN shares will move on.
1. AI Investment
Last year, I saw AI take center stage at several major high-tech companies. Amazon (AMZN) is one of the best institutional investors in AI. AI adoption has been a surprising tailwind with a historically lukewarm quarter. The expansion of generation AI from basic models to smarter analytics continues to push the momentum of companies.
Some companies like Alphabet (GOOGL) saw the decline after revealing AI spending, but Amazon could see the opposite as work with AIA is seen in a positive light across Wall Street.
2. AWS
Additionally, BOFA hopes AWS growth will continue to accelerate at the end of the year, bringing investors potentially double the advantages from the cloud and retail. AWS services’ operating profit margins are higher than those of veteran e-commerce businesses, indicating a major shift in perspective.
3.
Since the beginning of the year, Amazon (AMZN) stocks have grown by 3.7%. From Trump’s tariffs to war and mass stock market meltdowns, stocks have struggled this year. Despite the probability, the rating is endured and analysts remain bullish. On July 21, Baird analyst Colin Sebastian maintained his “outperform” in his stock, raising his price target from $220.00 to a new target of $244.00.
