Analyst Sees Amazon 'Substantial Revenue Upside'

Stay-at-home restrictions in Q2 should result in “substantial revenue upside” for Amazon, which reports Thursday, Wedbush's Michael Pachter wrote investors Monday. Grocery business will likely be a key driver, said the analyst, maintaining a revenue estimate of $81 billion. The company has switched focus from boosting shipping speeds to “the wellbeing of its employees,” Pachter said. COVID-19-related expenses in Q1 were over $600 million; Q2 estimates are $4 billion or more, he said. Spending on safety measures is “unlikely to slow down any time soon.”