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Amazon's Q3 Earnings This Week: What Wall Street's Saying

The online juggernaut is scheduled to announce its third quarter results on Thursday.
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Amazon  (AMZN)  shares will be on watch this week ahead of the company's third quarter earnings release after the close on Thursday. 

Shares were rising 0.53% to $3,223.93 per share in early market trading Tuesday. 

Here's what Wall Street is saying about the stock:

Deutsche Bank (Buy rating, $4,050 PT unchanged)

We remain bullish on Amazon and look for elevated growth to continue through the holiday season as retail foot traffic remains depressed, more fulfillment center capacity comes online, and the company benefits from significant owned last mile delivery capability with AMZL. We forecast a slight deceleration at AWS to +27.4% but we think near-term results here are less meaningful given our work suggests that the pandemic is causing enterprises to ultimately plan to move more to the cloud over the medium term, setting the stage for re-acceleration in AWS revenue growth in 2021.

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- Lloyd Walmsley

Barclays (Overweight rating, $3,530 PT unchanged)

It's hard to dispute that Amazon is one of the biggest beneficiaries of increased e-commerce penetration in 2020, and we remain bullish on the long-term story. We have recently been fielding more buyside questions on whether Amazon and its logistics partners can handle the massive volume increases expected in 4Q or whether it might have another tough holiday, with some orders going unfilled the closer we get to Christmas (as was the case a few years ago).

- Ross Sandler

Jefferies (Buy rating, $3,800 PT unchanged)

We believe uncertainty around the sustainability of top-line growth in 2021 has contributed to AMZN's stock underperformance since Q2 earnings (~1% vs Nasdaq ~7%). We forecast 32% net sales growth in Q3, which is roughly consistent with Q2 after adjusting for an estimated ~9% headwind from Prime Day being delayed until Q4 (7% tailwind in Q4). We think the market is expecting Q3/Q4 net sales growth of ~35%/30%+, which is slightly above us/ consensus.

- Brent Thill