Amazon (AMZN) – More Bullish Notes – March 16, 2024
Another day, another positive Amazon note pointing to more margin outperformance. Wells Fargo now sees its North American margin for 2024 reaching 6.7% vs. 6.0% previously. That may not sound significant, but it is. Based on Amazon’s 2023 North American revenue run rate, this boost would have been worth $2.5 billion in 2023 EBIT. That represents a 7% boost to its actual 2023 results. More ad revenue; more 3rd party selling; more fulfillment localization; better capacity utilization… and? Exploding margins.
Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases
Cantor Fitzgerald also raised its cloud service provider growth to 20%+ this year vs. 17.5% previously after chatting with the AWS Head of Financial Institutions.