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Key Takeaways:
- Analysts expect Amazon to report revenue growth of 9.5% and modest earnings expansion in Q2, despite facing tariff headwinds and increased infrastructure investments.
- The cloud computing leader is accelerating AI infrastructure spending while maintaining strong momentum in retail across its diversified business segments.
- Our valuation model, based on analysts’ consensus estimates, estimates that AMZN stock could deliver 17% annual returns over the next 2.4 years.
Amazon.com (AMZN) is poised to report its second-quarter results this Thursday, following the successful execution of initiatives across retail, cloud computing, and artificial intelligence.
Analysts covering AMZN stock expect revenue to increase by 10% year over year to $162.02 billion while earnings are forecast to grow modestly to $1.31 per share.
The e-commerce and cloud computing giant has demonstrated remarkable resilience while positioning itself as a dominant force in the artificial intelligence revolution through strategic infrastructure investments and innovative service offerings.
Amazon has beaten revenue estimates in four of the last five quarters and earnings estimates in each of the last five quarters.
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A Focus on Amazon’s AI Infrastructure Leadership
Amazon Web Services continues expanding its artificial intelligence capabilities with capacity additions across GPU and custom silicon infrastructure.
Amazon is bringing substantial Trainium2 and NVIDIA P5 instances online to meet surging demand for AI workloads, with CEO Andy Jassy noting that the AI business maintains a multibillion-dollar annual revenue run rate growing at triple-digit percentages.
AWS revenue growth of 17% demonstrates strong momentum in cloud adoption, reaching an annualized revenue run rate of $117 billion despite capacity constraints limiting potential growth opportunities.
Amazon’s AI strategy extends beyond infrastructure to application development, with Amazon Bedrock offering frontier models including Anthropic’s Claude, Meta’s Llama, and Amazon’s own Nova family of models.
The retail business maintains competitive strength through operational excellence and supply chain optimization, with management implementing forward inventory purchasing strategies to mitigate potential tariff impacts.
Amazon’s inbound network redesign enhances delivery speeds while reducing costs, resulting in a record delivery performance for Prime members worldwide.
The advertising segment continues to expand robustly, generating $13.9 billion in quarterly revenue with 19% year-over-year growth, benefiting from Amazon’s extensive customer reach across retail, streaming, and digital properties.
Strategic diversification encompasses Project Kuiper satellite launches and the rollout of Alexa+, positioning Amazon for future growth opportunities beyond traditional e-commerce and cloud computing.
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Is AMZN Stock a Buy Before Its Q2 Earnings?
Our valuation model estimates that Amazon will benefit from accelerating artificial intelligence adoption while maintaining market leadership across its diversified business portfolio throughout the forecast period.
The model projects AMZN stock could appreciate from its current price of $231 to $339 per share, representing a potential total return of 46.6% by 2027. This is just a model, and is certainly not a guarantee of returns or a recommendation.
This translates to an annualized return expectation of 17%, suggesting AMZN stock offers compelling upside potential for investors seeking exposure to cloud computing transformation and artificial intelligence infrastructure trends.
Management’s aggressive capital expenditure program, with $24.3 billion invested in Q1 primarily for AI infrastructure, demonstrates a commitment to maintaining technological leadership in rapidly evolving markets.
Amazon’s broad selection, competitive pricing, and operational efficiency create sustainable competitive advantages that strengthen during periods of economic uncertainty, historically resulting in increased market share.
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FAQs
1. Is Amazon a Good Stock to Buy?
Of the 71 analysts covering AMZN stock, 65 recommend “Buy”, four recommend “Hold”, and two recommend “Sell”.
2. Who is the largest shareholder of AMZN stock?
Jeff Bezos is the largest shareholder of Amazon stock, owning 8.3% of the total outstanding shares.
3. What is the AMZN stock price target?
The average AMZN stock price target among analysts is $251 in July 2025.
4. Does Amazon stock pay shareholders a dividend?
No, Amazon does not pay shareholders a dividend right now.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
