CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Analysts expect big things from Amazon’s Q1 earnings

The e-commerce giant will unveil its first quarter results after the market closes on Thursday, with Wall Street analysts expecting the company to get a major boost in sales from the Covid-19 crisis.

Amazon will unveil its first quarter (Q1) results after the market closes on Thursday’s session, with Wall Street analysts expecting great things from the e-commerce giant.

Expectations on Wall Street are so high because billions of people are stuck in lockdown amid the Covid-19 crisis with little to pass the time but spend their money online. And where better to splash the cash than on the world’s largest online marketplace.

In expectation of a surge in online sales, Amazon announced plans to hire 100,000 additional workers to cope with the rise in consumer demand early on in the crisis. The company later announceed it would hire a further 75,000 employees to meet demand.

Amazon shares climb higher amid Covid-19 crisis

Unlike many other stocks, Amazon shares have surged since the outbreak began, with the stock up 21% year-to-date, while the broader market continues to struggle, with the S&P 500 down 12% over the same period.

Even with the company’s share price soaring, Wall Street analysts remain bullish about the stock and believe that shares could climb even higher in 2020.

Of the 43 analysts offering 12-month price targets for Amazon the median target sits at $2525, with a high estimate of $2900 and a low estimate of £1850. The median estimate represents a 9.12% increase from its $2314.07 closing price on Tuesday.

According to Amazon’s own guidance, it forecast revenue generation of between $69 billion to $73 billion in Q1 2020. However, its guidance came before the Covid-19 pandemic took hold, with analysts expecting the e-commerce company to exceed its own guidance, with Wall Street’s consensus revenue forecast sitting at $73.06 billion, while profits are forecast to hit $6.32 per share.

‘Over the last several weeks, Amazon’s share of essential products, like health and household supplies as well as groceries, has ramped significantly and we believe this demand can lead to greater consumer wallet share gains longer term,’ JMP Securities analyst Ronald Josey said in a note to investors.

‘With traditional retail likely less of a competitor going forward as brick-and-mortar retailers close and/or significantly reduce footprints, we believe Amazon is among the best positioned to benefit from rising e-commerce trends.’

How to trade stocks with IG

Looking to trade Amazon and other stocks? Open a live or demo account with IG and buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:

  • Create an IG trading account or log in to your existing account

  • Enter ‘Amazon’ in the search bar and select it

  • Choose your position size

  • Click on ‘buy’ or ‘sell’ in the deal ticket

  • Confirm the trade

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get commission from just 0.08% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

See more forex live prices


See more shares live prices


See more indices live prices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.