Amazon (AMZN) stock is expected to rise or fall 6% by Thursday’s third-quarter earnings report, according to some Wall Street analysts. Amazon stock is currently trading at $229, and the market will see even more momentum in the near future. Amazon is now a major retail giant with a valuation of $2.6 billion. The e-commerce powerhouse has recently reported a significant increase in sales, with second-quarter data showing a 13% increase in sales to $167 billion. The company has recently been experimenting with AI and robotics to reduce operating costs, which could impact future earnings reports.
Based on option pricing ahead of the Q3 earnings report, traders expect AMZN to move 6.74% in either direction following this result. This is much higher than Amazon’s long-term average post-earnings move of -0.75% and reflects a slight decline. This sudden change is likely due to uncertainty about how much impact AI will have on businesses, employees, and workload intensity.
There are a few things to watch during its next earnings report that could affect the movement in Amazon (AMZN) stock. First, AWS has been integral to Amazon’s recent success and is also the focus behind AMZN’s recent AI investments. Cloud revenue growth has slowed, but may have been supported by Amazon’s AI infrastructure push, including $75 billion in capital spending in FY2025.
Moreover, Amazon’s e-commerce business is the main reason for the company’s success over the past decade. AMZN stock is likely to inflate if sales continue to increase, especially after the recent Prime Day event. Additionally, Amazon’s advertising business was a bright spot in the second quarter, posting strong year-over-year growth. If the sector continues to perform well, AMZN stock could rise by as much as 6% as expected. Alternatively, if any of these three factors show a loss, the stock could fall 6% in the opposite direction.
Therefore, it is difficult to pinpoint the exact price prediction for AMZN stock before tomorrow’s earnings call. Some investors may choose to hold on to the stock until the bell rings tomorrow, while others may choose to sell the stock now and cash out the 22% share price increase over the past six months. On Wall Street, analysts are bullish on Amazon, with most price targets above the current market price of $228, despite differing opinions on the stock’s direction. Analysts like Wedbush and Cantor Fitzgerald have high target price accuracy scores, suggesting they are confident in their forecasts. Wedbush rates Amazon as “outperform” with a target of $280, while Rosenblatt has a higher target of $297.
