Amazon share price: Everything you need to know before the Q4

Despite lofty expectations, analysts remain overwhelmingly bullish on Amazon heading into its fourth quarter earnings.

When is Amazon set to report its latest results?

E-commerce giant Amazon (AMZN) is set to report its fourth quarter (Q4) earnings on Tuesday, 2 February, after the market close.

Expectations remain elevated heading into Q4

One key impact of the coronavirus pandemic has been a radical shift in consumer behaviour – especially when it comes to how people shop.

Indeed, despite taking a massive toll on economies across the globe, COVID-19 has acted as a headwind for many e-commerce companies, with the likes of Etsy and Amazon breaking a slew of records during the pandemic period.

Amazon – arguably the world’s most prominent e-commerce player – has seen this shift in consumer behaviour strongly benefit its operational performance. Looking back at its Q3 results, the company reported substantial revenue growth at a massive scale, continued to maintain its impressive cash generative abilities, while also posting strong profit growth. Some of the key numbers from Amazon’s Q3 included:

  • Net sales of $96.1 billion, up 37%
  • Operating cash flow of $55.3 billion, up 56%
  • Net income of $6.3 billion, while earnings per share (EPS) came in at $12.37 per share, on a diluted basis

Despite clocking up record growth, the Amazon share price has mostly moved sideways following the release of its Q3 – rising a little over 4% since 29 October, 2020. AMZN last traded at $3,342.88 per share – some 66% higher than it did a year ago.

While the market may appear uncertain on the stock in the short-term, sell-side analysts remain overwhelmingly optimistic on Amazon’s prospects, with AMZN attracting a Buy rating on average, according to MarketBeat.

Analysts look to have only grown more bullish on the e-commerce giant in the last month: With Stifel Nicolaus, JP Morgan, Credit Suisse, Bank of America and Morgan Stanley all raising their price targets on AMZN in January as we head towards the company’s Q4.

Despite that bullishness, investors do have to grapple with an elevated valuation, with AMZN trading on a 97x earnings multiple – making it significantly more expensive than its large-cap tech peers Facebook, Alphabet (Google) and Apple.

Can Amazon maintain its operating momentum?

Management is confident that Amazon can again post another quarter of strong top-line growth. Looking at the company’s own guidance, management said they expected Amazon’s Q4 net sales to come in at between $112.0-121.0 billion, implying a lofty growth rate of between 28-38%.

By comparison, bottom-line expectations are somewhat more reserved. Management said they expect operating income to come in at between $1.0-4.5 billion. While lofty figures, even at the top-end of that range, they would be down on the Q3.

Analysts too have tempered their expectations, with the sell-side on average expecting Amazon to report earnings per share (EPS) of $7.19 in Q4, down materially from the $12.37 reported in Q3.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.