Options Data Tells Us Where Amazon Stock Could Be Headed Next After Q3 Earnings

Core Insights - Amazon reported Q3 earnings with an EPS of $1.95 and revenue of $180.2 billion, surpassing analyst expectations of $1.58 EPS and $177.8 billion revenue [1] - Despite the strong earnings report, Amazon shares fell over 3% in after-hours trading, although they are up approximately 1.5% year-to-date [1] Financial Performance - Amazon's AWS revenue reached $33.01 billion, exceeding expectations of $32.5 billion, which was projected to grow over 18% year-over-year [6] - The overall revenue for Q3 was $180.2 billion, indicating robust performance across various segments [1] Market Sentiment - Options traders anticipate a potential 6% upward movement in Amazon's stock by the end of the week, with a put/call ratio of 0.64 suggesting a bullish outlook [3] - UBS maintains a "Buy" rating on Amazon shares, raising the price target to $279, indicating a potential upside of about 25% from current levels [5] - The consensus rating among Wall Street firms is "Strong Buy," with a mean target of approximately $268, suggesting a potential upside of around 20% [7] Future Projections - Contracts expiring on January 16 indicate an upper bound for Amazon shares at about $249, suggesting continued momentum through 2025 [4]