Amazon (AMZN) will be reporting its second quarter earnings after the market close on Thursday, July 23rd. Tuna Amobi, equity analyst at S&P Capital IQ, spoke with TheStreet about what he is expecting to see coming from Amazon’s earnings. Amobi said that he is looking for revenue growth to come up to the higher end of the guidance Amazon provided, reaching somewhere around 17%-18% growth. Even though Amazon has been inconsistent with its earnings and results, Amobi is expecting this to be a ‘good quarter’ for the company given that it has had several consecutive quarters that have outperformed Wall Street’s expectations. Amobi is expecting Amazon web service to be the ‘main catalyst’ for this quarter’s potential earnings beat. The three things Amobi will be watching in the report from Amazon will be the breakdown of Amazon’s web services division, prime membership and the effects of the recent initiatives in Amazon’s prime business, and lastly, Amazon’s spending on fulfillment, hardware, and other services, which he says could be a swing factor for the company’s bottom line.
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