Shares of Amazon.com (AMZN -1.07%) climbed as much as 3% early Thursday, according to data provided by S&P Global Market Intelligence -- though the e-commerce giant moderated its gains to close up around 0.3% as the broader market pulled back late in the day. The move followed multiple positive analyst notes ahead of the company's quarterly earnings next week, as well as Amazon's announcement of the limited launch of a new pharmacy drone-delivery service.
These three analysts love Amazon stock right now
In a note to clients early Thursday, Oppenheimer analyst Jason Helfstein called Amazon a "top pick" going into 2024, citing its exposure to affluent customers, advertising opportunities, and opportunities for margin expansion.
Meanwhile, Wedbush analyst Scott Devitt reiterated his outperform rating and 12-month price target of $180 per share -- with shares trading around $129 as of this writing. He mused that the company is "broadly better-positioned than investors fear [with] catalysts ahead as retail margins continue to rise and [Amazon Web Services] growth accelerates against earnings comps."
Finally, D.A. Davidson's Tom Forte also reiterated his buy rating on Amazon stock with a per-share price target of $150. Forte said his firm is "encouraged by [Amazon's] robust seasonal hiring plans of 250,000 employees for the holidays, up from 150,000 last year." Forte was also pleased by Amazon's indication that its second annual Prime Big Deal Days in October outpaced sales from the same event last year.
Further fueling this morning's brief fire was Amazon's separate announcement that Amazon Pharmacy customers in the city of College Station, Texas can now get prescription medications dropped outside their doors via Amazon's drone-delivery service within 60 minutes of placing an order at no additional cost. Customers will have access to over 500 medications that treat common conditions including flu, asthma, and pneumonia. While this drone-delivery service is only available in a single city for now, the prospect of expanding such an incredible offering is undeniably exciting for investors over the longer term.
What to watch heading into Amazon's earnings next week
The timing of these analyst calls is no coincidence, as Amazon is slated to release third-quarter 2023 results next Thursday, Oct. 26, 2023. Analysts, on average, expect the company to report earnings of $0.58 per share (up from $0.28 per share in the same year-ago period) on an 11.3% increase in revenue to $141.3 billion.
Whether Amazon meets or exceeds those estimates remains to be seen. However, it's no surprise to see the stock rising today as bullish investors place their bets.
