Financial projections suggest a steady climb for the Seattle giant, with adjusted earnings per share anticipated at $2.03, up from $1.95 in the same period last year. Investors are balancing these growth figures against the backdrop of a 12% stock gain year-to-date, with shares recently trading at $252.73.
In section Market Quotes
Amazon Faces Investor Scrutiny Over AI Capital Spending
With Amazon set to report third-quarter results Thursday, analysts expect sales to hit $202.22 billion, a significant jump from last year’s $180.17 billion. While Wall Street remains optimistic, the company’s massive capital expenditure on artificial intelligence infrastructure has become the primary point of tension for shareholders bracing for volatility.
Attention centers on Amazon Web Services, where momentum in AI offerings like Bedrock and AgentCore provides a buffer against broader market skepticism. Although recent tech sell-offs were triggered by fears of excessive AI spending, analysts at Truist argue that Amazon’s capital outlays remain grounded in solid customer commitments. Mizuho analysts also highlight the potential for margin expansion, viewing current share prices as undervalued given the aggressive expansion of inference demand across the cloud sector.
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