On February 6, 2025, Amazon will release its Q4 2024 data. What can we expect?
As always, we will closely follow this event and inform all our readers about the results published by the marketplace and, most importantly, about any new developments for sellers.
For now, we can provide a brief summary of the main expectations from analysts.
We also remind you that you can find our commentary on Amazon’s Q3 2024 earnings report here.
Optimism about Amazon’s new quarterly report
Starting with a brief overview of forecasts from major Wall Street analysts, we can see a fair amount of optimism across all key Amazon divisions.
The performance of e-commerce—particularly relevant as it includes year-end sales results—should indicate satisfactory growth. The Web Services segment is also performing well. Although its growth is slower than in previous quarters, profit margins are expected to remain high. Advertising performance should also continue to improve.
Additionally, it will be interesting to hear what Amazon says about developments in artificial intelligence and AWS.
Amazon’s financial strength is not in question
Consultants’ analyses also confirm that Amazon’s financial strength is not in doubt. Its long-term sustainability is ensured by steady revenue growth, expanding margins, significant economies of scale (still partly untapped), and a well-structured balance sheet.
Naturally, Amazon will continue to diversify its operations in line with market trends, making it particularly interesting to analyze the qualitative insights accompanying the quarterly data.
>>> Learn more about Amazon’s selling fees. <<<
Key areas where we expect answers
It’s important to remember that, despite Amazon’s strong leadership position, it should not be considered invulnerable.
For this reason, the company is constantly innovating its offerings and adapting to consumer preferences.
Maintaining a competitive edge in e-commerce has led Amazon to invest in non-traditional areas. Notably, this includes an increasing focus on content production for Prime Video and the development of its own logistics network.
>>> Read our article How to avoid tax mistakes when selling on Amazon. <<<
Amazon: Future Outlook
| Reasons for Optimism | Key Concerns |
| The company is a leader in e-commerce. Its solid balance sheet allows it to invest in new growth opportunities. | Regulatory changes may force Amazon to address compliance and regulatory issues. |
| The advertising and AWS segments continue to grow faster than the company average. In the coming years, they are expected to contribute significantly to profitability. | Major new investments could limit free cash flow growth. The company may face more penetration challenges in certain countries. |
| The Prime program will continue to attract and retain customers, strengthening the network effect. | Amazon may not have the same level of dominance in every sector it enters. |
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