$Amazon.com(AMZN)$known as the Weather Bell at Wall Streets $NASDAQ(.IXIC)$because the stocks tells the future and guidance.
Amazon has E commerce which represent market sentiment and AWS cloud that indicate companies willing to invest cloud solutions when you can stay with On- premise IT which is workable.
Challenges for Amazon in Q3.
1. Q3 Rev guidance of 127.75B which is YoY 15% growth that's the highest comparing FAANG.
Q2 annoncement
Possible? Maybe. Q2 results was good shows that they are in control of their services, workforce and salaries. Its a good representation that their consumer products and AWS are competitive. On top of that, mention about few billions already adjusted due to cost headwinds (EPS - 29% YoY) Advertising on their platform could be flat seeing Snap.
2. Oil and Inflation
Lower fuel cost for trucks and deliveries did not happen but comparable with Q2. CEO vows to continue to manage cost and optimise their spending. Likewise on inflation Amazon online spending is typically barganing items sold at discounts. Compared Q2, Q3 the landscape has not change much ie. workforce issues etc.
3. Summer sales and holiday sessions.
As said this is a Weather Bell stocks. If guidance is negative it will be very telling for other stocks, especially consumer spending. Predicting that online spending will remain due to customer behaviours. I think if Q3 beat Wall Street estimate nothing will stop Amazon other than interest rate hike. (which likely end soon)
All in all, next few days will be good time to read between the lines for 2023 projection. In other words indication if the market has bottom.
Thanks for reading. [Cool]
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