The company’s e-commerce business has been losing money, and Amazon has been living off its AWS cloud computing service. Its experiment with automated stores (Amazon Fresh and Amazon Go) has not turned the tide in the grocery business, and more store staff was fired last week. Investors probably will be looking for more layoffs and wringing more money out of Prime subscribers to get the e-commerce business back on track.
Analysts remain strongly bullish on Amazon stock. Of 54 ratings, 49 have a Buy or Strong Buy rating, and four others have Hold ratings. At a price of around $132.00 a share, the upside potential based on a median price target of $148.00 is 9.1%. At the high price target of $220.00, the upside potential is nearly 67%.
Analysts are looking for second-quarter revenue of $131.34 billion, up 3.1% sequentially and 8.3% higher year over year. Adjusted EPS are expected to be $0.34, up from 10.6% sequentially and up from a loss per share of $0.20 in the year-ago quarter. For the full 2023 fiscal year, Amazon is expected to post EPS of $1.61, compared to last year’s loss of $0.27 per share, on sales of $561.41 billion, up 9.2%.
Amazon stock trades at 80.5 times expected 2023 EPS, 50.0 times estimated 2024 earnings of $2.59 and 34.9 times estimated 2025 earnings of $3.71 per share. The 52-week trading range is $81.43 to $146.57. Amazon does not pay a dividend. Total shareholder return over the past 12 months was negative 4.34%.
Apple
Apple Inc. (NASDAQ: AAPL) remains the world’s most valuable company, with a market cap of about $3.09 trillion, more than $600 billion above second-place Microsoft. Over the past 12 months, Apple shares have added more than 21%, and since the beginning of the year, the stock has added more than 81%.
Sales dropped sharply in the March quarter and year-over-year sales totals have fallen in two consecutive quarters. That streak is expected to continue with this report. What is likely to matter most is the company’s outlook. A new iPhone and smartwatch are coming. But what else?
Of 46 analysts covering Apple, 31 have a Buy or Strong Buy rating, and another 12 rate the stock at Hold. At a share price of around $195.60, the stock trades just above its median price target of $195.00. At the high price target of $240.00, the upside potential is 22.7%.
Analysts anticipate that Apple’s quarterly revenue will come in at $81.86 billion, down 13.7% sequentially and 1.3% lower year over year. Adjusted EPS are expected to come in at $1.19, down 21.4% sequentially and down a penny year over year. For the 2023 fiscal year that ends in September, analysts expect the company to report EPS of $5.97, down 2.3%, on sales of $384.86 billion, down 2.4%.
Apple stock trades at 32.8 times expected 2023 EPS, 29.8 times estimated 2024 earnings of $6.57 and 26.9 times estimated 2025 earnings of $7.27 per share. The 52-week range is $124.17 to $198.23. Apple pays an annual dividend of $0.96 (yield of 0.49%). Total shareholder return for the past 12 months was 21.83%.
Originally published at 24/7 Wall St.
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