Amazon’s second-quarter earnings on Thursday crushed every analyst’s estimates according to reporting by Business Insider.
Shares of Amazon popped, as much as, 6.4% on Friday. At the same time, updated Wall Street price targets began to go over $4,000 level for the e-commerce giant.
On Thursday, Amazon announced second-quarter earnings that blew past Wall Street estimates as the company saw a surge in business during the COVID-19 pandemic.
Key numbers include GAAP earnings per share: $10.30 analysts estimates were $1.50. Revenue of $88.91 billion was reported — the experts had projected $81.29 billion. AWS revenue was $10.81 billion, versus analyst predictions of $11.02 billion.
D.A. Davidson highlighted two catalysts that it expects will continue to drive Amazon shares even higher over the next 12 months: “stronger-than-expected results from Amazon’s AWS, as well as Amazon’s increasing mix of highly-profitable third-party sales,” according to the note.
JPMorgan analysts pointed out that Amazon’s live streaming and grocery delivery business units were both boosted by the pandemic.
The price target increased by 35% to $4,050 from $3,000.
During this time, Prime member growth accelerated both in the U.S. and internally.
JPMorgan also highlighted “The strength in the grocery category, performance with a delivery capacity increase of 160% and overall grocery sales triple in the second quarter.” This was happened in response to a consumer shift to e-commerce as people were forced to limit their trips to physical stores.
The company was already having impressive long-term growth. But the coronavirus crisis has put that growth on steroids.
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