Morgan Stanley Is Feeling Optimistic About Amazon’s Earnings

Morgan Stanley has revealed a bullish sentiment over Amazon’s earnings and thinks the e-commerce giant will be topping estimates.

Analyst Brian Nowak of the firm has reiterated a bullish position on the stock and believes the company will reporthttps://wallstreetnation.com/wp-admin/post-new.php better than expected earnings next week.

“In all, we estimate the wage increases will increase operating expenses by ~$2.75bn (~2.5%) in FY:19, assuming 23% y/y overall headcount growth in 2019 and ~20% y/y growth in affected employees.”

He added, “But this cost should be manageable as we see fulfillment efficiency improving from Kiva integration (aka Robotics).”

It was in September that Nowak wrote, “We are bullish on Amazon’s reported opening of 3k automated Go stores over the next 3 years.”

“With Amazon Go stores [the company] will now get a glimpse into people’s in-store shopping behavior. Over time, Amazon’s ability to use all of these datasets should lead to a more customer-focused brick and mortar shopping experience and a higher share of wallet flowing toward Amazon.”

It was in September that Bloomberg reported that Amazon is considering opening 3,000 of its cashierless stores by 2021.

Disclaimer: We have no position in Amazon.com, Inc. (NASDAQ: AMZN) and have not been compensated for this article.