Amazon’s Q2 Earnings Preview
<p>Deutsche Bank analysts provided their outlook on <a href='https://financialmodelingprep.com/financial-summary/AMZN'>Amazon.com, Inc’s (NASDAQ:AMZN)</a> upcoming Q2 earnings results, noting that the company’s e-commerce demand has held up relatively well year-to-date.</p>
<p>However, the analysts mentioned that the company is most certainly not immune to recessionary concerns, and as such, they temper their revenue outlook beyond Q2 and into 2023. For Q2, the analysts lowered their revenue outlook to $120 billion as they believe their sequential growth estimate of approximately 2% non-AWS revenue growth is in line with normal seasonality and consistent with their proprietary geolocation data across Amazon’s North America footprint. </p>
<p>While the Q3 operating income should benefit from waning inflationary headwinds associated with labor, fuel, and excess capacity, the analysts believe that incremental discounting associated with ballooning inventory growth will weigh on gross margins. Thus, the analysts believe that Q3 operating income guidance is likely to come in below the consensus estimates.</p>
<p>The analysts lowered their price target on the company’s shares to $155 from $174, while reiterating their buy rating.</p>

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