Bank of America resets Amazon stock price target before earnings

Core Viewpoint - Amazon's stock has seen a 5.3% increase over the past five days, with expectations for Q4 earnings to exceed consensus estimates set for February 5 [1] Financial Performance - Bank of America estimates Amazon's Q4 revenue at $213 billion and EBIT at $26 billion, surpassing Wall Street's estimates of $211 billion and $24.6 billion [3][19] - For Q1, revenue guidance is expected to be between $173 billion and $178 billion, with operating income projected between $18.5 billion and $22.5 billion [5][19] AWS Developments - AWS is projected to achieve a 22% year-over-year revenue growth, driven by increased capacity and demand [4] - AWS secured a $581 million deal with the U.S. Air Force's Cloud One Program [2] Layoff Plans - Amazon is expected to announce a second round of layoffs, affecting approximately 14,000 employees across various units, similar to the previous round in October [2] Stock Price Target - Bank of America has lowered its price target for Amazon from $303 to $286, based on a sum-of-the-parts analysis [6][7] Recent Initiatives - AWS launched the European Sovereign Cloud, designed to meet the needs of European governments and enterprises for sensitive data [10] - AWS plans to expand its European Sovereign Cloud footprint, starting with new local zones in Belgium, the Netherlands, and Portugal [11] Partnerships - LSEG announced a collaboration with AWS to enhance its market data services, leveraging AWS's capabilities for real-time financial data [12][13] - Infosys partnered with AWS to integrate AI-driven services aimed at improving productivity across various business functions [14][15]