The Amazon accounts test is approaching. The October 28, after the closing bell, the cloud and e-commerce giant will issue the accounts for the quarter between July and September. Expectations are for revenue growth of ‘only’ 16%, along with EPS of $ 8.93, down more than $ 3 from a year-earlier record when Amazon took full advantage of the ecommerce boom from lockdown.
Since the beginning of the year, Amazon has only recorded a narrow + 5.94% compared to almost + 25% of the S&P 500 and +22.5 of the NYSE FANG+ Index which includes the five main titles “FANG” (Facebook, Apple, Amazon, Netflix e Google/Alphabet) plus five more actively traded tech growth stocks (Alibaba, Baidu, NVIDIA, Tesla and Twitter).
What are the other super Big Techs on Wall Street doing in detail? Among the Faang to command is Alphabet con +61%, followed by Microsoft (+ 42%), Netflix (+ 28%) and Apple (+ 15%).
Outside the Faang the title Tesla, fresh from the historic milestone of the trillion market cap, marks + 39.5% YTD.
Unstoppable Musk, almost 100 billion in assets in front of the former CEO of Amazon
Tesla’s patron, Elon Musk, is increasingly detaching Jeff Bezos in the ranking of the richest scroungers in the world. Mr Amazon, who in recent years has long led the ranking of the richest on Wall Street, is now almost 100 billion dollars detached from Musk, his rival also in the battle for the conquest of space. On Monday, according to the Bloomberg Billionaires Index, Musk recorded a jump in assets of 36 billion, the highest daily performance ever and which equates to the net worth of the 34th richest person in the world. With his $ 289 billion, Musk now has an almost $ 100 billion lead over former No. 1 Jeff Bezos, whose net worth on Monday stood at $ 193 billion.
Musk has also expanded his lead over other former holders of the title of the richest person in the world. He is now worth $ 184 billion more than Warren Buffett, who is currently the 10th richest person in the world, and has an advantage of over $ 150 billion over Bill Gates’ number 4.
What prospects for the Amazon stock?
Wedbush analyst Michael Pachter believes Amazon has room to regain strength on the stock exchange and points to a price target of $ 4,300, well above the current $ 3,376 (as of the close of 26/10). The analyst is optimistic about Amazon’s e-commerce business after the company experienced a sharp slowdown in online sales growth in the second quarter disappointing investors. Driving it should be a mix of factors (seasonal trends, e-commerce share gains, a recovering economy and strong demand for advertisers).
Among the question marks there is certainly the decline in advertising activity recently reported by the social media company Snap which could have a negative impact on Amazon as well.
There is one among those who are a little less optimistic about Amazon today Swiss credit which sees a 26% upside opportunity in Amazon stock after lowering its price target to $ 4,200. The Swiss business firm believes compliance costs will be a problem for the e-commerce giant until the end of 2021 and into 2022. “E-commerce margins (hence earnings as well) could decline due to wage increases and a more inflated compliance infrastructure ”.