11:35 AM EDT, 08/02/2024 (MT Newswires) -- Amazon.com ( AMZN ) is set to achieve long-term profit surpassing rival megacap companies despite a mixed backdrop following Q2 results, Wedbush Securities said Friday in a report.

Revenue is shifting toward higher-margin areas including Amazon Web Services and advertising, which will add billions in profit each year, Wedbush said. By 2029, the two businesses are expected to account for 31% of total revenue, up from 26% in 2024, and operating income is projected to rise at a 20% compound annual growth rate over the next five years, ahead of Alphabet (GOOG) and Meta Platforms ( META ) , the report said.

After reporting mixed Q2 results, "we think the combination of sequentially lower North American segment margin, modestly weaker advertising growth versus expectations, and commentary indicating a cautious consumer will limit near-term upside to our operating income estimates and consensus," Wedbush said.

Wedbush reiterated its outperform rating on Amazon ( AMZN ) and its $225 price target.

On Thursday, Amazon ( AMZN ) reported Q2 revenue that trailed Wall Street's estimates, while per-share earnings topped the consensus.

Amazon ( AMZN ) shares slumped 9.3% in recent trading Friday. Google's ( GOOG ) parent Alphabet declined 2.6%, and Meta dropped 1.9%.

Price: 166.90, Change: -17.17, Percent Change: -9.33