Kevin Winter
Summary
- Amazon will announce its highly anticipated fourth quarter results on Thursday, 2/1, with investors anxiously waiting to see continued margin expansion and sustained growth.
- As one of the big-tech companies with the most variability in terms of results, I believe investors are too cautious ahead of the print.
- I expect Amazon will announce better-than-expected results, which will put the final bolt in Amazon’s transition to its ‘harvest’ stage.
- When investors gain more certainty about Amazon’s profit trajectory, I expect the stock will go higher, and therefore, I rate it a Buy ahead of earnings.
Amazon (NASDAQ:AMZN) is set to report its fourth quarter results on Thursday, after market close. Investors will look to see continued consumer strength, market share gains in advertising, and hope for growth acceleration in AWS.
But above all else, the most anticipated focus point is going to be Amazon’s profitability. Following three consecutive quarters of margin expansion, investors anxiously await to find out if 2023 marked the long-awaited gateway into Amazon’s ‘Harvest’ stage.
If 2023 was in fact the turning point, I expect Amazon will be one of the best-performing stocks in the market for the foreseeable future.
So, let’s try to find out if that is the case.
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