Amazon Is the Worst-Performing ‘Mag 7’ Stock in 2025: Can Q3 Earnings Turn the Tide?

Core Insights - The earnings season for the "Magnificent 7" began with Tesla reporting mixed results, leading to a decline in its stock price due to limited updates on the near-term outlook [1] - Upcoming earnings reports from major companies like Apple, Amazon, Alphabet, and Microsoft are anticipated this week [1] Amazon's Q3 Earnings Preview - Amazon is projected to report Q3 revenues of $177.7 billion, reflecting an 11.9% year-over-year increase, with previous guidance indicating revenues between $174 billion and $179.5 billion [3] - Consensus estimates suggest Amazon's Q3 earnings per share (EPS) will rise by 9.8% to $1.57, while management has guided for operating income between $15.5 billion and $20.5 billion [3] Key Areas of Focus for Amazon's Q3 Earnings Call - Holiday Spending Outlook: Attention will be on Amazon's commentary regarding sales expectations for the holiday season, especially considering economic stress among lower-income households [4] - Grocery Strategy: Insights into Amazon's grocery strategy will be monitored, particularly its expansion of same-day grocery services and the recent closure of Fresh stores in the U.K. [5] - AWS and AI Initiatives: The outlook for Amazon Web Services (AWS) will be scrutinized due to recent market share losses, alongside potential discussions on AI initiatives and a recent AWS outage [5] - Prime Price Hike: The potential for a Prime price increase, the first since 2022, will be a key topic, as it could significantly impact Amazon's revenue [5]