Amazon(US:AMZN) Youtube·2026-02-05 16:30Core Viewpoint - Amazon's stock has been trading sideways, down 3% in 2026 and 6% over the last year, with a 13% decline from its all-time high in November [1] Earnings Expectations - Earnings per share (EPS) is expected to be $1.98, a 5% increase year-over-year, and about three cents better than the previous quarter [3] - Revenue is projected at $211.46 billion, reflecting a 13% year-over-year increase [4] - Amazon Web Services (AWS) revenue is anticipated to reach $34.9 billion, a 21% increase from the same quarter last year [4] - Online store sales are expected to hit $82.3 billion, up approximately 9% [4] - Advertising revenue is forecasted to be $21.2 billion, showing significant growth from $17.3 billion in Q4 of 2024 [4] Capital Expenditure (Capex) Insights - Capex is expected to be a key focus, with projections of $34.9 billion for the quarter, up from $34.2 billion in the previous quarter [5][6] - The CFO indicated plans to spend $125 billion in 2025, with continued increases in 2026 to meet AI demand [6] Restructuring and Layoffs - Amazon announced the layoff of 16,000 employees and the closure of Amazon Fresh and Amazon Go stores, indicating potential restructuring [7] Market Sentiment and Volatility - The market is anticipating a 7% move in Amazon's stock following the earnings report, with increased volatility expected [14] - A cautious approach is being taken by investors, with some looking to buy on dips [9][13]