Oppenheimer analysts provided their views on Amazon.com, Inc. (NASDAQ:AMZN) ahead of the company’s upcoming Q4 results announcement. The analysts maintained their positive view on AWS as valuations have contracted significantly while investing in proprietary hardware and positioning itself as the operating system for cloud. However, they cut their 2023/2024 revenue growth estimates to 19%/18% year-over-year at $95 billion/$112 billion, compared to the Street estimates of $98 billion/$120 billion. The analysts reduced their 2023/2024 EBIT margin estimates to 26.5%/27.5% to reflect one-time true-ups from customer grooming.

Ecomm margin has been declining since Q1/22 excluding "temporary" costs. However, the analysts believe the 18,000 headcount reduction in corp-related employees should generate upside to revised estimates.