Analysts are expecting double-digit growth from Amazon, with revenue forecast to hit $116.3 billion in the quarter, an 11.3% increase from last year, though profits are expected to tumble 48% to $8.36 per share.
The economy is in rough shape, with gross domestic product collapsing 1.4% in the first quarter compared to the 1% gain economists had been expecting, according to the Bureau of Economic Analysis. The lingering impact of COVID, the supply chain crunch, and the cost of rampant inflation was taking a toll.
Real disposable income fell 2% for the period, while the personal consumption expenditures (PCE) index roared ahead 7%. Even controlling for the volatile categories of food and fuel, the PCE index was 5% higher.
Higher costs and lower disposable income adds a wildcard to Amazon's earnings for the period.
Amazon.com surprised the market favorably three out of the last four quarters, but the growing recessionary pressures could cause it to miss once again. However, the market seems to believe that won't happen yet.
Even so, shares of the e-commerce giant are down 18% just this month.