Cantor Fitzgerald’s Youssef Squali expects 25% revenue growth due to share gains in retail, AWS, and 3p sellers

Published By: Eunice Gettys on January 30, 2017 09:16 am EST

Amazon.com, Inc. (NASDAQ:AMZN) is scheduled to report its fourth quarter of fiscal year 2016 (4QFY16) earnings after the market closes on Thursday, February 02, 2017. After record-breaking sales during the past Holiday Season, Wall Street is expecting solid quarterly numbers from the largest online retailer of the nation.

Cantor Fitzgerald published a research note on Monday, maintaining its Overweight rating on Amazon shares along with a price target of $1,000, which represents a potential upside of over 20% from current price levels. The stock was trading down 0.57% at $831 in the pre-market trading hours today.

Youssef Squali, analyst at the research firm, gave his view about the upcoming financial results of the company in the report. He expects Amazon’s management to post solid results across the board, mainly on the back of the strong performance in the Holiday Season

He projects a “strong performance” with about 25% year-over-year (YoY) growth in the top-line, growing to the company’s expanding market share in Amazon Retail, Amazon Web Services (AWS), and its seller central: third-party (3P). He credits these fast-growing business divisions amid robust online US sales through the Christmas Season.

The research firm’s quarterly checks suggest a lift up in e-commerce growth during the fourth quarter, along with mobile transactions seeing solid growth in peak shopping days, such as Black Friday, Thanksgiving, Cyber Monday, and Christmas Eve.

Mr. Squali highlighted that Amazon Prime is the biggest, most loyal, and fastest-growing online customer base in the US e-commerce, while it continues to improve value proposition for its customers. Given that, he believes that Amazon was one of the “prime beneficiary” of this trend in which more and more Americans moved towards online shopping.

The company disappointed the Street with its conservative 4QFY16 of $42-45.5 billion in revenue. Though, now it appears that it is all set to surpass the guidance and analysts’ expectations.