Fourth-quarter results from Amazon , due Thursday after the bell, are on traders’ radar as Wall Street awaits updates on the tech giant’s cloud and retail businesses. The e-commerce giant has been undergoing a series of cost-cutting initiatives since late 2022 while establishing itself as an artificial intelligence play. Amazon Web Services, the tech giant’s cloud unit, will also be in focus, particularly after Alphabet reported disappointing cloud revenue earlier this week. In addition, analysts are looking for any insights from Amazon as to what President Donald Trump ‘s tariff threats will mean for its businesses. Tariffs on Mexico and Canada have been placed on pause for one month, while a 10% duty remains on goods from China. Analysts surveyed by LSEG forecast Amazon to report earnings of $1.49 per share on $187.30 billion in revenue. In the third quarter, the company surpassed estimates for earnings and revenue , powered by growth in its cloud computing and advertising segments. Shares of Amazon have gained more than 8% in 2025, outpacing the S & P 500 ‘s 3.2% rise. Analysts are largely bullish on the e-commerce giant’s fourth-quarter earnings, which historically have been boosted by the holiday shopping period. The majority of analysts covering the stock hold a buy or strong buy rating on shares, and the $250.66 price target implies 5% potential upside from current levels, per LSEG. AMZN YTD mountain Amazon shares in 2025 Analysts from Bank of America and Citi reiterated their buy ratings on Amazon ahead of its earnings release. They expect upside from strong holiday sales, as well as growth in AWS. Amazon is currently trading at historically expensive levels. However, “we think Amazon’s strong relative profit growth and strong AI positioning via AWS should support the stock’s multiple,” Bank of America analyst Justin Post wrote in a research note on Tuesday. He forecasts AWS revenue to have grown by 19% to 20%, citing a growing contribution from artificial intelligence. Post maintained his $255 price target on the stock, which suggests nearly 8% upside from Wednesday’s close. However, the analyst said he recently lowered his revenue estimate for the first quarter due to foreign exchange headwinds. Citi analyst Ronald Josey is also optimistic on Amazon’s holiday e-commerce performance and its cloud demand. He thinks the company can post a beat in the fourth quarter. “Given solid holiday sales, a healthy online advertising environment, and improving cloud demand, we believe results are likely to come in better than consensus expectations,” Josey said in a report to clients on Monday. He added, “Amazon is one of our top picks across the internet sector and with margins expanding, retail conversion improving, and demand for AWS ramping (despite FX headwinds, which we’ve adjusted for).” Trump’s tariffs on China may not necessarily be a headwind, Josey added. The analyst thinks the removal of the de minimis trade exemption on goods from China — which exempts packages valued less than $800 from import fees — could actually be a positive tailwind by putting outsized pressure on Chinese e-commerce competitor Temu. Josey reiterated his $275 price target on the stock, implying 16% upside from Wednesday’s close. Evercore ISI analyst Mark Mahaney also predicted “a beat and bracket quarter” from Amazon’s earnings announcement. He estimates North American retail revenue to have grown 8% year-over-year and AWS revenue to have surged 19%. “Even with greater FX headwinds, we think AMZN’s Q1 guide can bracket the Street overall,” Mahaney wrote in a research report on Sunday. For 2025, Mahaney is bullish on Amazon Pharmacy growth. The company has “aggressively” expanded its prescription delivery service, and interest around the segment has been growing, he noted. Prescriptions present a roughly $175 billion market opportunity for Amazon, the analyst said. —CNBC’s Michael Bloom contributed to this report.
