Amazon full-year results: where next for the share price?

The e-commerce giant will unveil its full-year results on Thursday, with investors hoping that Amazon will end the financial year on a high after missing analysts earnings forecasts in both its second and third quarters.

Amazon will unveil its full-year results on Thursday, with investors hoping the company won’t fall short of analysts’ earnings forecasts for a third consecutive time.

In its second and third quarters, the e-commerce giant managed to exceed analysts’ revenue estimates, but missed the mark on earnings.

But despite Amazon missing Wall Street’s expectations its stock rose by more than 23% in 2019, though underperformed the market, with the S&P 500 climbing more than 31% over the period.

In 2020, the stock is down a little over 1% and behind the broader market which is up 2% on a year-to-date basis.

Wall Street analysts estimate Amazon will generate revenue of $85.89 billion and adjusted earnings per share (EPS) of $4.04 in its upcoming fourth quarter results.

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Analysts upbeat about Amazon shares in 2020

The 46 analysts offering 12-month price forecasts for Amazon have a median target of $2200, with a low estimate of $1850 and a high estimate of $2573.40.

The median estimate implies a potential upside for the stock of 20.3% based on Amazon closing at $1828 on Monday, with the low and high estimates representing a potential upside of 1.2% and 40.8% respectively.

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Amazon earnings expected to decline in Q1 2020

Looking ahead, analysts are expecting Amazon to kick-off the new financial year with strong sales growth, but the company’s earnings are forecast to decline in Q1 2020.

Wall Street analysts forecast the e-commerce giant will see revenue increase by 20% year-over-year to $71.65 billion and adjusted EPS to fall 9.2% to $6.44.

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