Amazon Earnings Preview: Analysts Bullish Ahead of Q3 Results

# Amazon Earnings Preview: Analysts Bullish Despite Stock Trading Below All-Time Highs

In this episode, we dive deep into Amazon's financial outlook as the tech giant prepares to release its quarterly earnings report. With AMZN stock currently trading around $230—below its 2024 peak—we examine why Wall Street remains overwhelmingly optimistic. Discover what top analysts from Morgan Stanley and UBS are forecasting, with consensus targets suggesting a potential 10% upside from current levels. We break down the expected quarterly sales of $162 billion, projected operating income improvements, and how Amazon's strategic investments in artificial intelligence and AWS cloud dominance are positioning the company for future growth. Whether you're an investor watching for post-earnings movements or simply interested in one of tech's most influential companies, this comprehensive analysis provides essential context on Amazon's market position, potential catalysts, and challenges ahead.

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Episode Transcript

Speaker 1 (00:00):
Today, Amazon's stock price sits just above two hundred thirty
United States dollars, reflecting only a slight change over the
past several sessions, but placing the stock below its all
time high from earlier in the year. Trading volume on
the most recent day was above twenty eight million shares,
which is fairly typical for Amazon and not markedly above
its average, suggesting neither a frenzy nor a sell off

(00:22):
ahead of the upcoming earnings report. Anticipation is high this
week as Amazon is about to post quarterly earnings. Analysts
expect sales for the quarter between one hundred fifty nine
billion and one hundred sixty four billion United States dollars,
with Wall Street consensus targeting one hundred sixty two billion
United States dollars. Operating income is projected to come and

(00:43):
stronger compared to last year, ranging between thirteen and seventeen
and a half billion United States dollars. Historically, Amazon often
outperforms its own guidance, which usually leads the stock to
rally after earnings, though there have been exceptions, such as
the drop after last year's fourth quarter lad In terms
of recent analyst activity, the market remains bullish Morgan Stanley

(01:05):
reaffirmed its overweight rating and kept its price target at
three hundred United States dollars, emphasizing confidence in Amazon's artificial
intelligence growth potential and manageable tariff exposure. Ubbs raised its
target to two hundred seventy one United States dollars and
also continues to recommend buying the stock. The consensus among

(01:27):
analysts from several major firms projects a twelve month target
near two hundred and fifty five United States dollars, representing
an increase of ten percent or more from the current price.
Despite some recent minor downgrades and insider selling, the broader
sentiment remains strongly positive. Other important developments include ongoing investment

(01:49):
in artificial intelligence by Amazon Web Services, significant e commerce
market share in the United States, and a world leading
position in cloud computing Globe. Even as the stock has
trailed the broader standard and Poor's five hundred index this year,
most experts see Amazon's diverse revenue streams, strong cash flow growth,

(02:11):
and resilient business model as supportive of continued gains, although
macroeconomic headwinds and regulatory scrutiny remain possible risk factors.