Earnings From Amazon Are Due Next Week. 

As Amazon AMZN +4.04% approaches first-quarter earnings, J.P. Morgan analysts are feeling bullish. 

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Anmuth, an analyst at Doug Anmuth & Company, recently published an article in which he stated that Amazon (ticker: AMZN) has the best internet strategy out there. It is a macro economic climate that is weighing heavily on wallets, he explained, and the first-quarter e-commerce trend "remains muted," showing a slowing growth rate compared to the first quarter of last year, despite improving from the fourth quarter.

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In spite of this, Anmuth believes Amazon will continue to gain market share through e-commerce retailers such as Amazon and other large e-commerce providers by piling up market share in untapped categories such as food, clothing and accessories, and furniture. As a consequence, he is confident that Amazon will be able to increase its operating margins in 2023 thanks to strides it is making in the retail sector, and believes it is "taking meaningful steps" to reduce costs. 

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According to Anmuth, the price target for the stock is $135 and the rating remains Overweight. There was a 3.3% increase in Amazon's share price on Friday, rising to $107.22 from $107.08.

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In the coming days, after the market closes on April 27, the company is expected to report its first-quarter earnings. A survey of analysts conducted by FactSet predicts that the company will earn 23 cents a share on sales of $124.6 billion for the current quarter.

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In Amazon Web Services' annual shareholder letter published on April 13, Chief Executive Andy Jassy said that, given the challenging macroeconomic environment, companies are being more cautious in spending and are facing short-term headwinds at the moment. Therefore, investors are likely to be paying close attention to this company's performance.  

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As a result of AWS, Amazon's operating profit is one of the largest contributors to its overall profit. Thomas Champion, a Piper Sandler analyst who specializes in cloud computing, said earlier this month that the company's cloud computing business would perform even better as a result of a challenging spending environment and noted that it holds 50% of the market share. On the other hand, he reiterated his Overweight rating for the stock, as well as his $123 price target.

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