UPDATE—April 30, 2024: This article has been updated to reflect more recent analyst estimates and share price information, as well as details about the possibility of a dividend announcement.

Amazon (AMZN) is set to report first-quarter earnings after markets close Tuesday, days after announcing a new grocery delivery subscription service and expansions to its 7games bet:artificial intelligence (AI) tools. Investors will also likely be watching whether Amazon will announce a dividend after 7games bet:Meta Platforms (META) and 7games bet:Google parent Alphabet (GOOGL) recently announced they 🦂would start paying dividends.

Analysts expect Amazon will significantly increase its revenue and profit year-over-year, with net income projected to rise to $8.95 billion or 84 cents per share, more than double the $3.17 billion or 31 cents per share it reported in the first quarter of 2023, according to consensus estimated compiled by Visible Alpha. Total net sales of $142.63 billion are predicted, up from $127.36 billion a year ago.

The e-commerce and web hosting giant announced a pair of initiatives a week before the earnings report, a grocery delivery subscription service and new tools in its 7games bet:Amazon Bedrock product, which offers building blocks for customers to make personalized AI tools.

Bank of America Securities analysts wrote in a recent note that the subscription service could compete with Instacart for new customers in the grocery delivery space, as well as similar offerings from programs like 7games bet:Walmart+ and Target Circle.

	Analyst Estimates for Q1 2024	Q4 2023	Q1 2023
Revenue	$142.63 billion	$169.96 billion	$127.36 billion
Diluted EPS	84 cents	$1.00	31 cents
Net Income	$8.95 billion	$10.62 billion	$3.17 billion

Key Metric: Advertising Revenue

One metric analysts have noted as a potential point of substantial growth is Amazon's advertising business, which could post billions of dollars in additional revenue over time as the company continues the rollout of ads on Prime Video that it 7games bet:started earlier this year.

Wedbush Securities analysts wrote that ads on Prime Video could generate about "$6.5B of incremental revenue" once it is fully in place across the world. They also wrote that in a recent survey, about 56% of respondents said they increased their ad spend on Amazon by at least 10% year-over-year in the first quarter, with a quarter saying they increased spend by more than 20%. Nearly all the advertisers surveyed told Wedbush they planned to increase their budget for Amazon ads at some point this year, leading the analysts to project Amazon's advertising revenue to grow 24.5% from the first quarter of 2023, and 23% by the end of the full fiscal year.

Amazon 7games bet:Chief Executive Officer (CEO) Andy Jassy said in his 7games bet:shareholder letter earlier this month that he has confidence that Prime Video can grow into a large and profitable business on its own, saying streaming advertising was "growing quickly and off to a strong start."

Business Spotlight: Rise of AI

Jassy and 7games bet:JPMorgan Chase CEO Jamie Dimon spent a significant portion of their annual letters to investors expressing their excitement about the future of AI and the impact it could have on their businesses. AI has been a 7games bet:central theme for tech earnings so far this season, after earnings from Meta, Alphabet, and Microsoft (MSFT) last week.

Jassy wrote that he thinks AI could be the "largest technology transformation since the cloud (which itself, is still in the early stages), and perhaps since the Internet."

Jassy said in the shareholder letter that the AI boom across the market could benefit his company in a number of ways, from increased demand for 7games bet:Amazon Web Services (AWS) to Amazon's Bedrock AI-platform building tool, as well as Amazon Q, its AI-powered coding assistant. Amazon has said previously that there are "tens of thousands" of customers using Bedrock currently, including Delta Air Lines (DAL), Intuit (INTU), and Pfizer (PFE).

Wedbush analysts said that they project AWS to be "a primary beneficiary of generative AI and the company is well positioned with solutions for all layers of the genAI stack."

Amazon shares were 0.9% lower at $179.32 in intraday trading as of about 1:45 p.m. ET Tuesday ahead of the company's earnings report later in the day. They have gained about 18% since the start of 2024 amid a boom in 7games bet:AI-related tech stocks.