BMO Raises Amazon AWS Growth Rate to 19%, Citi Projects Q2 Operating Income of $13.88 Billion, Q3 Revenue Guidance $156-$161 Billion

BMO has raised its growth rate projections for Amazon's AWS segment in the second quarter of 2024 to a Street-high of 19%, up from 17.8%. Analysts indicate that channel checks suggest AWS's growth could potentially exceed 22% during this period. This optimistic outlook follows increased visibility from Google's results, prompting a more confident stance on the growth rate. Meanwhile, Citi has also expressed positive expectations, forecasting a 17.5% year-over-year growth in AWS for Q2 and an operating income of $13.88 billion. Citi anticipates that Amazon's revenue guidance for Q3 will be between $156 billion and $161 billion, with operating income projected between $14 billion and $18 billion. Amazon is scheduled to report its Q2 results on August 1, 2024, after market close, with expectations of beating consensus estimates in both revenue and operating income.