Amazon: Cloud Takes Center Stage Ahead of Keenly-Anticipated Q3 Earnings
Amazon (NASDAQ:AMZN) is gearing up to announce its quarterly results this Thursday, capping off a week filled with major corporate earnings reports.
Investors are eagerly anticipating the outcome, particularly after a series of recent earnings announcements that included a positive surprise from Microsoft and setbacks for Alphabet.
Notably, Amazon shares are heading into this reporting season amid a correction phase, with a nearly 17% decline since reaching their annual peak of $145.86 on September 14.
This decline includes a recent drop of over 5% on Wednesday, although the stock maintains a year-to-date gain of approximately 50%.
Beyond these key figures, investors will be particularly interested in the results of Amazon Web Service (AWS), Amazon's cloud services division, which is the main contributor to the company's earnings.
Alphabet (NASDAQ:GOOGL) stock fell and Microsoft (NASDAQ:MSFT) stock rose this week because of the former's poor performance and the latter's strength in the cloud services segments.
Therefore, Alphabet's performance in terms of AWS revenue is set to influence the stock price.
Breaking down the headline figures, the InvestingPro consensus of analysts anticipates earnings per share (EPS) of $0.60.
While this represents a decrease from the prior quarter's $0.65, it more than doubles the $0.28 EPS recorded during the same quarter the previous year.
Furthermore, it's essential to highlight that 24 analysts have revised EPS forecasts upward over the past 90 days, with only 2 lowering their expectations during this period.
In terms of revenue, the consensus stands at $141.4 billion, reflecting a 5.35% increase compared to the previous quarter and an 11.4% surge year-on-year.
Source: InvestingPro
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