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.
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.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.