- Goldman Sachs (NYSE:GS) expects Amazon (NASDAQ:AMZN) will disappoint with its forecast when it reports Q3 earnings on Thursday but maintains a Buy rating and $1,275 price target.
- Analyst Heath Terry expects Amazon to forecast revenue growth of 26% to 34% on the year with up to $1B in GAAP operating profits compared to the $1.5B sell-side consensus estimate.
- But Terry believes investors underestimate “the potential for organic growth reacceleration as the ~70% growth in infrastructure spend (CapEx and Capital Leases) over the TTM begins to deliver returns and AWS comps ease."
- In other news, Amazon will now allow for premium subscriptions to Alexa Skills, which opens up a way for developers to monetize after the company shut down the voice assistant’s ad network.
- The first live Skill to get the premium option was Jeopardy!, which now offers Double Jeopardy questions and the ability to play missed days from the same week.
- Prime members can have access to the Double Jeopardy clues for free but non-members will need to pay $1.99 per month for a subscription to the Skill.
- The six clues per weekday offered before will remain free.
- Amazon shares are down 0.59%.
- Previously: Amazon launches Alexa security camera, Key for in-home deliveries (Oct. 25)
- Now read: I Revise My Stance On IBM (NYSE:IBM)
Original article