11:23 AM EDT, 07/26/2024 (MT Newswires) -- Amazon.com ( AMZN ) is poised for a Q2 beat driven by "solid" revenue as data point to improved online retail trends and higher Amazon Web Services growth during the period, BofA Securities said in a Friday note.

Apart from headline revenue and operating profit, BofA Securities said key metrics for the quarter include CapEx, AWS growth and margins, US and international retail margins, as well as advertising revenue growth.

Among the Q2 drivers are indications of accelerating demand for core AWS services and AI momentum, less-than-expected deceleration in North American retail growth annually, and a potential ramp-up in Prime Video ads, among others, the investment firm added.

However, BofA Securities noted that Amazon's ( AMZN ) Q3 outlook could be conservative due to high Street expectations, increasing freight costs and the possibility of establishing new fulfillment capacity to prepare for the holiday season.

Amazon ( AMZN ) is set to release its Q2 results on Aug. 1.

BofA Securities maintained its buy rating and $220 price target on the company.

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