Key Takeaways AMZN targets Q4 net sales of $206-$213B, implying 10-13% growth versus the prior-year quarter.Amazon Web Services is expected to post steady revenue growth as AI infrastructure investments ramp up.AMZN's Q4 results likely reflect Prime Big Deal Days, ad-tech launches & stronger third-party seller services.Amazon (AMZN) is scheduled to report fourth-quarter 2025 results on Feb. 5.For the fourth quarter, the company projects net sales between $206 billion and $213 billion, suggesting 10% to 13% ...

Core Insights - Amazon's cloud segment, AWS, showed strong margin performance in Q3 2025, with an operating income of $11.4 billion on revenues of $33 billion, resulting in a 34.6% operating margin, indicating robust demand and effective cost management [2][10] - AWS's trailing 12-month operating margin stabilized at 35.9% after previous compression due to AI investments, supported by the scaling of custom silicon strategy and significant revenue growth from Trainium2 chips [3] - AWS revenue growth accelerated to 20% year-over-year, adding $2.1 billion sequentially, reaching a $132 billion annualized run rate, with a substantial $200 billion backlog providing multi-year revenue visibility [4] Innovations and Competitive Position - The December re:Invent conference introduced innovations like Trainium3 UltraServers and Graviton5 processors, enhancing compute performance and energy efficiency, which bolster cost optimization for enterprise customers [5] - AWS's ability to monetize capacity investments while maintaining mid-30% margins, combined with accelerating growth and visible long-term demand, supports a positive stock outlook [6] Competitive Landscape - Microsoft’s Intelligent Cloud segment achieved a 43% operating margin in Q1 FY2026, with Azure revenue growth of 40%, showcasing its ability to balance expansion and margin discipline [7] - Alphabet's Google Cloud reported a 23.7% operating margin in Q3 2025, up from 17.1% the previous year, with operating income surging 85% year-over-year, indicating a strong margin improvement trajectory [7] Stock Performance and Valuation - Amazon shares returned 9.2% over the past six months, outperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector [8] - The Zacks Consensus Estimate for Amazon's 2026 earnings is $7.85 per share, reflecting a 9.46% increase from the previous year [11] - Amazon's stock appears overvalued with a forward P/E ratio of 31.16X compared to the industry average of 25.64X, indicating a Value Score of D [12]

U.S. stocks settled higher on Friday, with the Dow Jones index gaining over 100 points during the session supported by economic data that strengthened expectations of a Federal Reserve interest rate cut this week.Wall Street analysts make new stock picks on a daily basis. Unfortunately for investors, not all analysts have particularly impressive track records at predicting market movements. Even when it comes to one single stock, analyst ratings and price targets can vary widely, leaving investors confused ...