Amazon (AMZN) shares fell 3.92% to $244.62 as selling pressure increased ahead of the company’s third-quarter earnings report. The stock declined from around $252.50 and briefly approached $242 before recovering slightly, but resumed its downward movement as markets awaited Amazon’s financial results.

Amazon will release its third-quarter results on Thursday, following mixed earnings reports from major technology companies. Google shares plunged more than 12% after its latest earnings announcement, while Microsoft shares gained after reporting stronger-than-expected results. The contrasting reactions have underscored the role of company performance in technology-stock movements, and Amazon’s figures will add a further data point to that comparison.

According to Bloomberg consensus estimates, analysts expect Amazon to report earnings per share of $1.97 and revenue of $202.25 billion. In the same quarter last year, Amazon reported earnings per share of $1.95 and revenue of $180.16 billion. The estimates point to revenue growth of roughly 12% and a modest increase in earnings compared with the year-earlier period, although the company’s reported results will determine whether it meets those expectations.

The report is expected to provide updated figures for Amazon’s revenue, earnings and performance across its major business segments. Cloud computing is likely to remain a central focus, particularly as investors assess demand for artificial intelligence infrastructure and the financial effect of Amazon’s technology investments.

AWS Growth and Advertising Revenue in Focus

Amazon Web Services (AWS) is projected to generate $45.68 billion in quarterly revenue, compared with $33 billion in the same period a year earlier. The estimate represents expected year-over-year growth of approximately 38% and would provide an updated view of demand for cloud computing services and infrastructure supporting artificial intelligence applications.

Amazon’s online store sales are projected to reach $69.6 billion, representing growth of approximately 3%. Advertising revenue is expected to reach $20.91 billion, an increase of 18% from the comparable period. The estimates reflect differing growth rates across Amazon’s retail and advertising operations, with advertising projected to expand several times faster than online store sales.

AWS provides cloud infrastructure and services for businesses using artificial intelligence applications. Amazon’s cloud platform includes Bedrock, which enables enterprises to access different AI models. The company’s Graviton processors also support cloud-computing workloads and form another part of Amazon’s technology operations.

Artificial Intelligence Spending Remains a Key Factor

Amazon continues to spend substantial amounts on artificial intelligence infrastructure, alongside other major technology companies. The investments support computing capacity and services intended to meet demand for AI applications. Capital expenditure therefore remains an important factor in assessing the company’s financial performance.

Recent earnings announcements have highlighted differences in spending plans across the technology sector. Google and Microsoft presented capital-expenditure outlooks below market expectations, while Meta raised the lower end of its guidance last week. Those developments have drawn additional attention to the investment plans of major technology companies, and Amazon’s disclosure of its own capital-expenditure figures will sit alongside those peer updates when its results are published.

Amazon’s earnings report will provide further information about its financial performance and investment plans. AWS revenue, operating profitability and capital expenditure figures will help explain the company’s quarterly results, while the reported numbers will be measured directly against the consensus estimates published ahead of the release. The share-price decline to $244.62 establishes the market position ahead of Thursday’s announcement.

Source: Blockonomi