30 October, 2025 careerofbusiness.com 0 Comments 1 category
Amazon CEO Andy Jassy
Amazon CEO Andy Jassy

Noah Berger/Noah Berger

Amazon is heading into its latest earnings report as the laggard of the Magnificent Seven this year, and investors are looking for some key updates that could spark new momentum.

Specifically, Wall Street wants to know more about its AI ambitions and how it plans to position itself against stiff competition from other Big Tech players like Microsoft and Alphabet. AWS, retail margins, and any lingering concerns over the impact of tariffs will also be on investors’ radar.

The call with analysts is scheduled for 5 p.m. ET.

Bank of America is optimistic about progress in key areas

BofA analysts are upbeat heading into the report, even as doubts swirl around Amazon’s AI strategy.

“Given healthy retail sales, strength in Online advertising, and July AWS layoffs, we see potential for operating income upside and are 4% above Street for GAAP operating profit at $20.4bn vs $19.7bn,” the analysts wrote.

“We believe Street expectations are for around 1-2% beat on US retail, AWS growth at 18-18.5% based on 3P data, and op. profit slightly above the high end of Amazon’s 3Q guidance range.”

The bank maintains a Buy rating on Amazon stock and a $272 price target, implying 21% upside from Wednesday’s price.

Wall Street analysts estimate Amazon will report revenue of $177.8 billion and EPS of $1.58 for Q3

Third Quarter

  • Net sales estimate $177.82 billion
  • Online stores net sales estimate $66.93 billion
  • Physical Stores net sales estimate $5.56 billion
  • Third-Party Seller Services net sales estimate $42.05 billion
  • Subscription Services net sales estimate $12.49 billion
  • Amazon Web Services net sales estimate $32.39 billion
  • North America net sales estimate $104.96 billion
  • International net sales estimate $40.77 billion
  • Third-party seller services net sales excluding F/X estimate
    +10.8%
  • Subscription services net sales excluding F/X estimate +10.7%
  • Amazon Web Services net sales excluding F/X estimate +17.9%
  • EPS estimate $1.58
  • Operating income estimate $19.72 billion
  • Operating margin estimate 11.1%
  • North America operating margin estimate +6.98%
  • International operating margin estimate 4.02%
  • Fulfillment expense estimate $27.49 billion
  • Seller unit mix estimate 60.7%

Fourth Quarter

  • Net sales estimate $208.45 billion
  • Operating income estimate $23.78 billion
  • Capital expenditure estimate $32.33 billion

Year

  • Capital expenditure estimate $118.76 billion

Source: Bloomberg

Read the original article on Business Insider

 

Category: Business

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