Amazon quarterly revenue is expected to grow by 23% according to Street analysts
Amazon.com, Inc. (NASDAQ:AMZN) may have to refund in-app charges for accident purchases by kids as a result of a lawsuit filed against the company in 2014. The Federal Trade Commission (FTC) along with lawsuit judges are of the opinion that there is a lacking in Amazon in-app as it charges accounts of users for purchases without confirming or informing beforehand. If the verdict comes in against Amazon then company will have to refund all the in-app charges from 2011, occurring from accidental purchases by kids. In 2014, litigations of a similar nature were faced by Apple Inc. (NASDAQ:AAPL) and Alphabet Inc (NASDAQ:GOOGL) which resulted in refunds of around $50 million; Amazon stock dropped by around 2% on the news of probable refunds.
Amazon is all set to report earnings results as the market closes today. Street analysts have projected consensus earnings per share (EPS) of $0.57 which will be a turnaround on year-over-year (YoY) basis as the company posted a loss per share of $0.12 a year ago. Moreover, Street analysts are foreseeing a 23% increase in quarterly revenue and believe that Amazon will report revenue in between $22.7-28 billion. The consensus estimates were based on a poll of 45 analysts. Amazon stock is trading at $606.57 up by 1.45% in pre-market hours on April 28.
Although Amazon stock has gained momentum since the first week of February but is still trading in the red and is down by 11.97% year-to-date (YTD). However, Dow Jones Index and S&P 500 are up by 2.49% and 1.68% respectively. After YTD market value loss, Amazon current market capitalization is around $281.27 billion. The company’s total outstanding shares in the market are around 471.59 million shares, out of which 3.65 million shares are traded on daily basis.
Amazon stock has a consensus rating of Sell with a consensus 12-month price target of $731.115 as per 26 analyst poll at Zacks Investment Research. Out of which, the most bearish analyst suggested a $575 as near term price target for Amazon stock whereas the most bullish analyst has given a $900 price target recommendation.