Amazon earnings are today. Here's what to expect

Analysts predict strong results for the e-commerce giant, driven by growth in its Amazon Web Services (AWS) cloud business, contributions from AI, and a “well-managed” holiday season.

Bank of America $BAC (BAC) is forecasting revenue of $187.24 billion, about $1.53 per share, for the fourth quarter, just shy of Wall Street’s consensus of $187.31 billion in revenue, approximately $1.47 per share.

Analyst Justin Post noted robust fourth-quarter retail data, with Amazon’s core e-commerce business performing well. AWS, in particular, is expected to grow by 19% and 20%, boosted by AI, which the company uses to manage operations, provide entertainment, and assist online shoppers.

Looking ahead, Bank of America also predicts that Amazon will provide first-quarter sales guidance between $152.25 billion and $158.25 billion, which is slightly below market expectations of $158.7 billion. Despite this, BofA maintains a buy rating on Amazon’s stock, with a price target of $255, citing the company’s strong profit growth and AI positioning.

Amazon shares have increased roughly 5.8% in the previous month, reflecting investing optimism ahead of the earnings report.

Beyond earnings, Amazon is navigating other challenges, including looming tariffs on Chinese imports from President Donald Trump. While these tariffs could disrupt e-commerce rivals like Temu and Shein, Amazon is in a strong position. With its established U.S. infrastructure, faster shipping capabilities, and fewer-tariff related hurdles, Amazon is well-positioned to absorb those types of cost increases. To compete with the Chinese fast-fashion giants, Amazon launched ultra-cheap platform Haul in Nov. 2024.

Despite struggles in its physical stores, Amazon’s delivery network continues to excel. In 2024, the company set new delivery speed records, with over 9 billion items arriving the same or next day globally. U.S Prime members saved an estimated $95 billion on free shipping last year, with an average customer saving over $500 in delivery fees.

As Amazon prepares to report earnings, all eyes will be on how its growth stacks up against Google $GOOGL’s (GOOGL), which recently failed to woo Wall Street. As one of the nation’s largest employers, with a market cap of $2.5 trillion, the tech behemoth’s ability to maintain its leadership in cloud services and delivery – and sustain its dominance in e-commerce – remains to be seen.