Is Amazon Going To Soar To New All-Time Highs?

Amazon (AMZN) reports its FQ2 '15 results after the closing bell tonight. Currently, the Estimize community have 106 estimates and are predicting an EPS figure of -$0.07 compared to Wall Street which predict -$0.17. Estimize are also predicting higher revenues of $22.422B relative to Wall Street's $22.308B consensus.

 

Amazon has been a fantastic investment year-to-date (YTD) returning a capital gain of 56.86% compared to the NASDAQ which has appreciated 9.04%. Amazon has also been able to outperform some of its key competitors (YTD) including eBay (EBAY) and Alibaba (BABA) who have returned 17.80% and -20.57% respectively.

Amazon's success can be attributed to a whole range of impressive fundamentals. However Amazon's revenue growth figures are certainly a major contributor to its success. In Amazon's FQ1 '15 results, the company reported YoY revenue growth of 15.08% which is substantially higher than its competitors including Best Buy Co (BBY) and Barnes & Noble (BKS) who recorded negative figures of -0.94% and -10.43% respectively.

Amazon's continued success with respect to revenue growth has allowed the company to seal market share from big name players such as (WMT) and Best Buy (BBY). Amazon recently held its “Prime Day,” held for Amazon Prime members and topped expectations. Although the sales figures from Prime Day are not recorded in tomorrow's release, the strong result is helping move Amazon's share price higher. One hurdle Amazon may face with respect to revenue growth comes through a new market entrant in Jet.com. Jet officially opened on Tuesday and are promising to offer lower prices than Amazon.com. The relies on a subscription model offering customers attractive membership rewards through lower prices. A recent study conducted by Boomerang Commerce found that Jet.com was cheaper than Amazon 81% of the time. Importantly, the study that was conducted used a small sample size of only 100 different products from various categories.

Print Friendly, PDF & Email
No tags for this post.

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *