Amazon Founder and CEO Jeff Bezos addresses the audience during a keynote session at the Amazon Re:MARS conference on robotics and artificial intelligence at the Aria Hotel in Las Vegas, Nevada on June 6, 2019.
Mark Ralston | AFP | Getty Images
Amazon is reporting its third-quarter financial results after the bell on Thursday.
Here’s what Wall Street is expecting:
- EPS: $4.62, according to analysts surveyed by Refinitiv, vs. $5.75 last year
- Revenue: $68.8 billion, according to analysts surveyed by Refinitiv, vs. $56.6 billion last year
- AWS: $9.1 billion, according to analysts surveyed by FactSet, vs. $6.68 billion last year
The quarterly report comes as Amazon is entering another heavy investment period. The company spent over $800 million in the second quarter to expand its free one-day delivery program to more products and regions, and is expected to continue investing in the program for the foreseeable future. It’s also pointed to increased spending on the growing cloud business and bolstering its advertising sales force.
Amazon’s stock is up 18% this year, slightly below the 20% gain for the S&P500.
Third quarter results will also include sales from Prime Day, which the company called its biggest shopping event in history. Amazon previously said Prime Day sales surpassed those of Black Friday and Cyber Monday combined, with more than 175 million items sold over the 48-hour event.
Investors will look for additional commentary around the regulatory environment, as politicians from both sides of the aisle have recently called for heavier scrutiny of the company’s business practices. There are also growing concerns over Amazon’s cloud business, which is expected to see revenue growth slow to 36%, only the second time to record a sub-40% growth rate since the company started reporting the numbers in 2015.