CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Amazon share price: 3 things to watch for in Q1 results

The online retail giant may have to address these issues before its Q1 earnings report.

Amazon share could depend on these three factors. Here are questions investors may ask before Amazon’s Q1 earnings report.

Will Amazon Prime help Amazon's Q1 results?

The ecommerce site’s Prime membership service could be a vital part of Amazon’s Q1 earnings. Prime members can get access to the company’s critically acclaimed video streaming service and grocery delivery from its Whole Foods stores. The popular service’s fast delivery window and reward system for customers could also help Amazon’s Q1 profits.

The corporation could also develop its brand with its Amazon advertising business. Analysts at Stifel Investment Bank wrote that Amazon’s Q1 revenue could increase because of its growth in new markets.

‘Amazon is well-positioned as the leader in two large/fast growing markets (retail and cloud), and we believe the company’s advertising business, which is still in the early stages, will continue to benefit as more businesses shift ad budgets Amazon’s way given its dominance in product search,’ wrote the analysts.

Can cloud computing drive Amazon's Q1 earnings?

Amazon has also had success with its Amazon Web Services (AWS) cloud division. Amazon’s Q1 revenue could increase after the impressive $25.66 billion made from AWS in 2018. The service also introduced Amazon Document Database as a service for web developers to help Amazon compete with Google Cloud. Amazon’s Q1 results could be helped by the growth of AWS.

Will international issues impact Amazon's Q1 profits?

Though Amazon is the dominant online retailer in the US, the company faces stiff competition in China. China’s own successful ecommerce site Alibaba has likely caused Amazon to close its marketplace business in the Asian nation. This latest move could affect Amazon’s Q1 results.

Amazon’s Q1 revenue overseas could also be affected by Indian regulations. The ecommerce rule bans online retailers from selling items only on their websites. Amazon has many branded products exclusive to the site and this regulation could influence Amazon’s Q1 profits internationally as well.

The ecommerce giant hopes to expand its international reach through a partnership with Casino Food Group. The agreement could spark more expansion into stores across Europe. Amazon’s Q1 results could be affected by these international events.

Investors will be monitoring Amazon’s Q1 earnings to see if the online retailer can continue its dominance.

This information has been prepared by IG, a trading name of IG Markets Limited. 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.

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