Amazon’s stock experienced a significant surge, reaching its highest level in over two months, thanks to a positive prediction from a research firm regarding the company’s retail business in North America. The shares increased by 3.6% to $107.44, marking their highest value since February 3. This jump in stock price propelled Amazon’s market value to an impressive $1.1 trillion.

YipitData, a data analysis company, has collected data suggesting that Amazon’s net sales in North America for the first quarter are expected to exceed analysts’ estimates. The research firm also revealed that sales in April are trending above Wall Street’s consensus for the second quarter. It’s worth noting that more than half of Amazon’s total revenues come from North American net sales, with the remaining portion being comprised of international sales and Amazon Web Services (AWS).

Analysts have made predictions, based on Refinitiv data, that Amazon’s North American net sales for the first quarter will grow by 8.5% year over year, amounting to $75.2 billion. These estimates are encouraging, further boosting confidence in the company’s performance.

YipitData, headquartered in New York, specializes in aggregating and analyzing data related to consumer behavior in the United States. Their analysis includes monitoring email receipts, online transactions, app data, and web traffic, providing valuable insights into market trends.

JPMorgan analyst Dough Anmuth anticipates that e-commerce trends may have been subdued in the first quarter due to economic uncertainty impacting consumer spending. Nevertheless, Anmuth remains optimistic about e-commerce, especially in sectors like groceries and appliances. His positive outlook extends to Amazon’s stock, as he considers it “our Best Idea.”

Aside from the promising predictions for its retail business, Amazon achieved a legal victory in a private lawsuit accusing the company of engaging in anti-competitive practices. The lawsuit, which was filed in a Seattle federal court, claimed that Amazon’s actions resulted in higher prices for shipping and fulfillment services, thereby violating U.S. antitrust laws.

Following the recent gains, Amazon has successfully recovered more than 30% from its lowest closing price in December. However, the stock is still down 42% from its record high closing price in July 2021, indicating that there is room for further growth.

With Amazon set to release its first-quarter financial results next week, investors and analysts will closely monitor the company’s performance to validate the predicted strong retail sales in North America.

Useful links:
YipitData
Refinitiv