Amazon ripped off the Band-Aid. Does that mean big earnings are about to flow?

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Amazon.com Inc. dumped a lot of bad news into its holiday-quarter results, and that could set the company up for a better-looking 2023.

Amazon.com Inc. dumped a lot of bad news into its holiday-quarter results, and that could set the company up for big profits in 2023.

The e-commerce giant is coming off its worst annual loss on record, helped to that milestone by $2.7 billion in impairment charges related to things like layoffs and store closures. With those moves in the rearview mirror, Amazon AMZN is expected to turn things around in 2023, as analysts tracked by FactSet call for $15 billion in net income on the year, after a $2.7 billion loss in 2022.

The company’s e-commerce sales declined in three of its last four reported quarters, and analysts expect another slight drop this time around, with projections for $50.6 billion in category sales, down from $51.1 billion a year before. If recent results from competitors are any indication, however, the slowdown may not be as bad as feared. Microsoft Corp. MSFT and Alphabet Inc. GOOGL GOOG both saw decelerating cloud performance in the March quarter but posted better growth rates than analysts were anticipating.

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