Amazon stock boosted amid bullish calls by analysts, Whole Foods job cuts

Yahoo Finance Live discusses a rise in Amazon stock after a bullish call from JPMorgan ahead of the e-commerce giant's Q1 earnings report. Read More...

Yahoo Finance Live discusses a rise in Amazon stock after a bullish call from JPMorgan ahead of the e-commerce giant’s Q1 earnings report.

Video Transcript

DAVE BRIGGS: Amazon, meanwhile, rising today. A solid day. Up 3% to end this week on a bullish call from JPMorgan head of earnings analyst, Doug Anmuth, saying the stock remains the best idea in the internet sector. He’s confident the retail giant will be able to improve its margins, Seana.

SEANA SMITH: Yeah, certainly. I think Amazon is going to be under pressure when it comes to these earnings results because all eyes are going to be focused on that cloud division, AWS. We know it’s so critical here for Amazon, but the cost cutting measures you would think maybe will help offset some of that slowing growth that we are expected to see. Just the degree of that is, I think, what the Street is debating right now.

We did get that report this morning that they’re going to be cutting or they are cutting Whole Foods workers. Not a large amount but also the online sales, which we don’t tend to talk about as much when it comes to Amazon–

DAVE BRIGGS: We never talk about e-commerce.

SEANA SMITH: because it’s such a massive business. But you talked about the fact that the economy is slowing, the online sales number could potentially drop here just by single digits. But certainly, that would just be indicative of really how the consumer is feeling right now and what it means for so many of those other consumer facing companies down the line.

DAVE BRIGGS: Yeah. We talk about the job layoffs a lot with Amazon but look, they’ve cut 18,000, another nine this spring. This is a company that went from 800,000 to 1.6 million. They doubled their workforce in the pandemic so these are really a drop in the bucket. Should add, Baird analysts today added that Azure, Microsoft, clearly an easy lead in cloud because of their partnership with ChatGPT, but they say Amazon is coming on fast in that regard.

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