:max_bytes(150000):strip_icc()/GettyImages-2247010742-06bf4301d3ec4e0698dab49351c33334.jpg "Here’s How Much Amazon Stock Is Expected to Move After Earnings Thursday")
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Key Takeaways
- Amazon is slated to post fourth-quarter earnings after the closing bell Thursday, with analysts projecting record revenues from the cloud giant.
- Options pricing suggests traders expect Amazon’s stock could move up to 7% in either direction in the days following the results.
Amazon is set to report its latest quarterly results after the closing bell Thursday, with traders anticipating a big move in the tech giant’s stock that could bring it to new highs following the results.
Options pricing suggests traders expect Amazon (AMZN) stock could move nearly 7% in either direction by the end of the week. A move that size from the stock’s recent level around $238 could push the shares above $255, past November’s highs—or pull them back below $222.
Why This Matters to Investors
As Amazon and many of its Big Tech peers continue to invest heavily in AI infrastructure, investors will likely be watching closely for updates Thursday on the company’s cloud growth and future spending plans.
Last quarter, growth in the company’s Amazon Web Services segment helped drive earnings above expectations and Amazon lifted its capital expenditures forecast. Bank of America, Wedbush, and Citi analysts recently wrote that they expect Amazon could top estimates again with its results Thursday, with a boost to its retail operations from a strong holiday shopping season and solid AWS growth as Amazon expands its cloud computing capacity.
Amazon is seen reporting a nearly 13% year-over-year jump in revenue to a record $211.55 billion for the fourth quarter, according to estimates compiled by Visible Alpha. Earnings per share are projected to rise to $1.97 from $1.86 a year ago.
During Amazon’s earnings call, executives could face questions about the company’s AI spending, as well as its efforts to curb costs elsewhere. Last week, Amazon announced the largest round of layoffs in the company’s history, with plans to cut 16,000 jobs after eliminating 14,000 roles in October.
Wall Street analysts are overwhelmingly bullish on Amazon stock, with 21 of the 22 analysts tracked by Visible Alpha calling Amazon a “buy,” compared to just one “hold” rating. Their mean price target around $298 would imply more than 25% upside from the stock’s recent levels.
