Amazon Set to Report Earnings Thursday: Key Numbers Investors Should Watch for Market Trends
Imagine you’re watching a race and everyone’s eyes are on the star runner—Amazon. Investors want to know if Amazon will keep sprinting ahead or if it might trip up in this quarter’s earnings race. This matters because Amazon’s results can affect not just its own stock, but the whole tech sector and even your investment portfolio.
Why Investors Care About Amazon’s Earnings
Amazon is a giant in online shopping and cloud computing. When it reports earnings, investors look for signs about the health of tech companies, shopping trends, and the future of cloud technology. If Amazon does well, it can lift the mood of the entire stock market. But if it stumbles, it can drag other tech names down with it.
What’s Expected This Quarter?
- Earnings: Analysts think Amazon will earn $1.97 per share, up 6% from last year.
- Revenue: Expected to hit $211.33 billion, a 12.5% increase over last year.
- Cloud Growth: Amazon Web Services (AWS), its cloud business, grew 20.2% last quarter—beating forecasts.
Most experts are optimistic, with 67 out of 71 analysts rating Amazon as a “buy” or “strong buy.” But the stock has only gained 1% this year and actually dropped 4% over the past 12 months.
Bullish Case: Reasons to Be Positive
- Cloud Power: Analysts see AWS as a big strength. Some believe AWS could keep growing faster through 2026, thanks to its long-term relationships and top technology.
- Advertising Growth: Amazon’s ad business is growing fast. UBS and BMO Capital think ads could outpace all other parts of Amazon’s business this year.
- AI Future: Experts like those at William Blair say Amazon has a strong chance to win in artificial intelligence, which could help many parts of its business.
- Market Upside: Big banks have high price targets for Amazon’s stock—some see it rising 29–33% from current levels. See more analyst ratings here.
Bearish Case: Risks and Concerns
- Competition: AWS faces tough rivals like Microsoft Azure and Google Cloud, which could slow its growth.
- Retail Pressures: While online sales are strong, consumer confidence is slipping. That could hurt Amazon’s retail business if shoppers pull back.
- AI “Laggard” Fears: Some investors worry Amazon is falling behind in the AI race compared to other tech giants.
- Stock Performance: Amazon has lagged behind other “Magnificent Seven” tech stocks over the past year, which makes some investors nervous.
Historically, tech stocks like Amazon can swing up or down after earnings. In fact, a Nasdaq study found that strong earnings often lead to short-term stock jumps, but weak results can mean sharp drops.
What the Experts Are Saying
- William Blair: Thinks Amazon’s best days are ahead, especially in AI and cloud.
- Deutsche Bank: Sees Amazon as a possible big winner in 2026, with a $300 price target.
- Bernstein: Believes AWS will keep speeding up, even if rivals slow down.
- BMO Capital: Likes the ad business, but is cautious about retail in a shaky economy.
- UBS: Raised its target to $311, expecting more growth as AWS improves.
Investor Takeaway
- Watch Cloud Growth: AWS results are a key signal for Amazon’s future. Strong numbers here could boost the stock.
- Follow the Ad Business: Ads are a fast-growing, high-profit part of Amazon. Keep an eye on this segment’s numbers.
- Balance Your Bets: Amazon has upside, but risks from competition and weaker retail remain. Don’t put all your eggs in one basket.
- Think Long-Term: If you believe in Amazon’s tech and AI potential, dips after earnings could be a chance to buy for the future.
- Stay Diversified: Whether Amazon beats or misses, a mix of tech, retail, and other stocks helps protect your portfolio.
Amazon’s earnings are like a traffic light for tech stocks. Green means go, but yellow or red could mean caution ahead. Make sure you check both the numbers and the bigger picture before making your next move.
For the full original report, see CNBC
