STOCK OF THE WEEK: Amazon reports third-quarter results
With tech earnings season in full swing, attention turns to Amazon, which is set to report its third-quarter results on Thursday.
The internet retail giant has fared relatively well this year despite pressure on household finances, and Wall Street is hoping that good fortune continues.
Analysts expect sales of £116 billion for the three months to September, while profits are expected to be up to £5 billion.
The company appears confident about the rest of the year, hiring 250,000 seasonal workers for the upcoming Christmas rush. That is around 100,000 more than in the previous year.
However, investors still need to be cautious.
Sophie Lund-Yates, analyst at Hargreaves Lansdown, said: “Amazon has been plagued by overspending in the past, however, and such a headcount increase increases the risk should performance disappoint – a risk for which the market is punishing the group would.” .’
Investors will also be keeping a close eye on the company’s cloud business, which has become a key profit driver.
Last quarter, Amazon Web Services (AWS) revenue growth slowed as cautious companies reviewed their bills and cut spending.
The company announced this week that it will begin using drones to deliver parcels in the UK from the end of 2024.
Amazon shares are up nearly 50 percent year to date, regaining some of the ground they lost in 2022.