Amazon to report Q3 earnings as Wall Street looks for improved AI growth

Core Viewpoint - Amazon is set to report its Q3 earnings, aiming to reassure investors about AWS's competitiveness in the AI market compared to Microsoft and Google [1] Group 1: Earnings Expectations - Amazon is expected to report earnings per share (EPS) of $1.58 on revenue of $177.8 billion for Q3, compared to EPS of $1.43 and revenue of $158.9 billion in the same quarter last year [4] - AWS is projected to generate $32.4 billion in revenue, reflecting an 18% increase from $27.5 billion in Q3 of the previous year [5] Group 2: Market Position and Competition - Amazon's stock has increased by only 2.3%, significantly lagging behind Microsoft's 24% and Google's 37% gains, attributed to perceptions that AWS is not capturing as much of the AI market [2] - AWS is perceived to be losing market share due to a shift in computing, with analysts noting that it is lagging behind peers in revenue growth [4] Group 3: Partnerships and AI Exposure - Amazon relies on Anthropic for AI exposure, sharing this partnership with Google, which also provides cloud services to Anthropic [2] - Anthropic recently signed a multibillion-dollar deal with Google to utilize up to 1 million Google TPUs for its AI offerings, further enhancing Google's position in the AI space [3] Group 4: Analyst Sentiment - Despite broader market sentiment, some analysts express optimism about Amazon's prospects, citing positive trends in AWS growth, the core retail business, and strong advertiser demand [6]