Here's what Wall Street experts are saying about Amazon ahead of earnings

Amazon (AMZN) is scheduled to report results of its first fiscal quarter after the market close on Thursday, April 28, with a conference call scheduled for 5:30 pm ET. What to watch for:

SENTIMENT 'EXTREMELY' NEGATIVE: In a research note ahead of quarterly results, Benchmark analyst Daniel Kurnos noted that shares of Amazon now sit about $100 off the 52-week low ahead of the first quarter print as the market continues to struggle, especially the pandemic winners in e-commerce and streaming. The analyst believes sentiment is "already extremely negative" and under the assumption that forward forecasts are too high, which, at least from a cost perspective, should already be known given the surprise 5% fuel and inflation surcharge announced a couple a weeks ago. Kurnos thinks the Q1 report "could be okay" from a revenue perspective and the real question is the second quarter guide, where he sees himself already some $2.5B below consensus, reflecting what the analyst believes is more normal quarter-over-quarter seasonality. Kurnos expects results will be somewhat backstopped by ongoing strength in AWS and advertising but acknowledges that it is difficult to get a sense for how much of the downside he expects is already priced in. The analyst has a Buy rating and a price target of $4,000 on the shares.

ACCELERATING REVENUE, FCF GROWTH POTENTIAL: In a research note on Friday, Credit Suisse analyst Stephen Ju told investors that he maintained an Outperform rating and $4,100 price target on Amazon ahead of the company's first-quarter earnings results. The analyst noted that Amazon remains a top pick as it is "the only company that has the potential to deliver accelerating revenue AND free cash flow growth." The bullish thesis is based on e-commerce segment operating margin expansion, optionality for faster-than-expected free cash flow growth vis-a-vis its advertising segment, and upward bias to AWS revenue forecasts.

ROBUST CONSUMER DEMAND: Ahead of the e-commerce giant's quarter results, Wedbush analyst Michael Pachter said he expects revenue and operating income around the high-end of Amazon's guidance ranges driven by higher product pricing and robust consumer spending, partially offset by higher inflation costs. He has an Outperform rating and a price target of $3,950 on the shares.

TARGET CUT: Last week, UBS analyst Lloyd Walmsley lowered the firm's price target on Amazon to $4,550 from $4,625 but kept a Buy rating on the shares. The company remains well-positioned to benefit from revenue acceleration and margin improvement in the second half of the year in spite of the rising energy costs, the analyst told investors in a research note. Walmsley added that historical episodes of revenue acceleration and margin expansion bode well for Amazon shares, particularly given its current valuation of below-15-times enterprise value to expected 2023 EBITDA.

That same day, MKM Partners analyst Rohit Kulkarni also cut his price target on Amazon.com to $4,000 from $4,100, keeping a Buy rating on the shares. The analyst lowered his e-commerce revenue assumptions while raising his estimates for the company's AWS, Subscriptions, and Advertising business. Kulkarni further cited operating income headwinds for Amazon in the first quarter coming from higher oil prices and higher warehouse worker wages, along with the risks of potential unionization costs.

Meanwhile, Cowen analyst John Blackledge lowered the firm's price target on Amazon to $4400 from $4500 but maintaining an Outperform rating on the shares. The analyst expects solid first-quarter results with his estimates slightly above consensus driven by AWS Advertising and Sub segments. He trimmed his second-quarter estimates given supply chain and inflationary pressures.

STOCK SPLIT, SHARE REPURCHASE: Back in March, Amazon said in a regulatory filing that the board of directors had approved a 20-for-1 split of the company's common stock to be effected through an amendment to its Restated Certificate of Incorporation. Additionally, the Board of Directors of Amazon authorized the company to repurchase up to $10B of the company's common stock.

OUTLOOK: During the company's last earnings call, Amazon said it saw first-quarter revenue of $112B-$117B, with consensus at $116.3B. The e-commerce giant also said first-quarter net sales were expected to be between $112.0 billion and $117.0 billion or to grow between 3% and 8% compared with first-quarter 2021.