Amazon Stock Could Swing 7% After Today’s Earnings

This article first appeared on GuruFocus.

Amazon (NASDAQ:AMZN) is set to report fourth-quarter 2025 earnings after markets close Thursday, with options traders pricing in about an 7% move in either direction.

The stock has traded mostly sideways over the past year as investors weigh rising artificial intelligence spending and tougher competition in cloud services from Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL).

Wall Street expects Amazon to post earnings of about $1.94 a share, up roughly 6% from a year earlier. Revenue is projected to rise about 13% to $211.44 billion.

Focus remains on Amazon Web Services, the company’s higher-margin cloud unit. Analysts see AWS growth as key after operating income from Amazon’s North America and International retail segments softened in the prior quarter, while AWS income continued to expand.

Some analysts expect cloud demand to benefit from new AI capacity, though competition and infrastructure limits could cap near-term upside. Advertising is also in focus, as it continues to grow faster than Amazon’s core retail business.

Market participants will watch management commentary for signals on AWS momentum, AI investment plans, and consumer spending trends heading into 2026.