Amazon (NASDAQ:AMZN) opened in the green today ahead of an expectedly optimistic first-quarter earnings report due later this evening. Analysts are also abuzz over a potential Amazon dividend for the first time in the company’s history.
So, what should you expect from Amazon this time around?
Well, investors have their eyes on a few key elements of the company’s earnings numbers. This includes growth in Amazon Web Services (AWS), strong overall consumer spending and an update on its plans for artificial intelligence (AI).
On the last point, Amazon has repeatedly shown faith in its generative AI cloud services, which it believes could prove to be a highly lucrative segment in its business model in the years to come. It has also invested heavily in the technology.
“Amazon has an incredibly steady retail business and that’s all great and they’re a dominant player — but none of that means anything if what they’re doing in the cloud, and what they’re going to do with AI, doesn’t bear fruit,” Paul Marino of GraniteShares told Bloomberg.
Analysts expect to see revenue of $142.7 billion, toward the top end of Amazon’s guidance range between $138 billion and $143.5 billion. This would put the company at a net income of $9 billion, with GAAP earnings of 84 cents per share.
Analysts Remain Hopeful of Inaugural Amazon Dividend
Many investors and analysts are hoping to see a dividend from Amazon. Indeed, Amazon remains the only trillion-dollar market capitalization company that doesn’t pay a dividend. Even the likes of Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) offer at least some dividend to their shareholders. That leaves Amazon as the last mega-cap tech company standing.
Investors believe Amazon may also announce a further expansion of its stock buybacks.
AMZN stock is up about 20% year-to-date (YTD) as one of the largest players in the tech stock rally. The S&P 500 and Nasdaq Composite are both up up about 7% YTD, each having lost some value since the start of Q2.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
