Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Barclays (LON:BARC) analysts reiterated their Overweight rating for Amazon.com (NASDAQ:AMZN) stock, maintaining a price target of $240 per share. According to InvestingPro data, analyst consensus remains strongly bullish with price targets ranging from $195 to $305, reflecting the market’s confidence in this $2.2 trillion market cap company. The analysts provided insights into the progress of Amazon’s Kuiper satellite project, which is anticipated to affect the company’s financials in 2025.
The analysts noted that the Kuiper satellite launches are proceeding at a slower pace than initially expected. They now forecast 10 launches in 2025, compared to the previously estimated 12. One launch was completed in April, another is scheduled for late next week, and the remaining eight are expected in the second half of the year. Despite these adjustments, Amazon maintains robust financials with $650.31 billion in revenue and an impressive EBITDA of $126.14 billion in the last twelve months.
According to the analysts, the Kuiper project will cost Amazon approximately $2.5 billion in 2025. They highlighted that the expenses will be more concentrated in the latter half of the year. The analysts have slightly adjusted their cost assumptions for 2025, raising them by about $70 million due to increased satellite production costs, although this is somewhat offset by reduced launch costs.
The report emphasizes that these developments were anticipated and factored into the analysts’ published estimates. The details provided aim to shed light on the changes and their potential impact on Amazon’s financial outlook.
In other recent news, Amazon has announced a significant investment of $10 billion in North Carolina to enhance its data center infrastructure, which will support AI and cloud computing technologies. This expansion is expected to create at least 500 new high-skilled jobs and contribute to the state’s economy, further solidifying North Carolina as a technology hub. In parallel, Amazon is establishing a new agentic AI group within its Lab126 R&D unit to develop advanced robotics capabilities, underlining its commitment to innovation in AI. Additionally, JPMorgan has raised its price target for Amazon stock to $240, citing the company’s strong position in e-commerce and cloud services, as well as its prospects for multi-year margin expansion. Amazon Pharmacy has also introduced new features, allowing caregivers to manage medications for others and expanding access to its PillPack service for Medicare customers. Meanwhile, German antitrust officials have expressed concerns over Amazon’s pricing tools, which they claim could violate competition laws by limiting the visibility of certain retailers’ offers. Despite these challenges, Amazon continues to emphasize its role in providing competitively priced goods and maintaining a consumer-friendly marketplace.
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