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<\/p>\n Read in app<\/p>\n <\/a> <\/p>\n This story is available exclusively to Business Insider Online retail giant Amazon is next in line among the mega-cap Mag Seven to report earnings.<\/p>\n Along with Apple, the tech titan will report results for the last quarter after the closing bell on Thursday.<\/p>\n Wall Street is feeling bullish heading into the report, with focus on AI and the AWS segment, as well as any further details about how sellers on the platform are navigating tariffs.<\/p>\n UBS calls the company the “most coiled” Big Tech name, and sees it poised to rally after the stock was revalued during the tariff sell-off this spring.<\/p>\n Amazon stock is up 5% year-to-date through Wednesday’s close.<\/p>\n The results will be published shortly after the closing bell, with the analyst call scheduled for 5 p.m. ET.<\/p>\n 2025-07-31T17:00:57Z<\/p>\n AWS is the key to future gains, BofA says<\/p>\n Amazon CEO Andy Jassy<\/p>\n Noah Berger\/Getty Images for Amazon Web Services<\/p>\n Justin Post, research analyst at Bank of America, believes Amazon’s high-margin cloud computing business will be the key value driver going forward.<\/p>\n Post will be looking for signs of AWS capacity increases that will lead to further AWS revenue growth in the second half of the year. Last quarter, Amazon said AWS growth was held back by chip shortages<\/a> and energy constraints at its data centers. <\/p>\n Post also expects Amazon’s partnership with Anthropic<\/a> to contribute significantly to the AWS business as the AI startup runs its training models on Amazon’s infrastructure.<\/p>\n BofA recently raised its price target from $248 to $265, which implies 14% upside from current levels.<\/p>\n 2025-07-31T16:30:54Z<\/p>\n Prime Day could get a mention, but don’t expect a full analysis<\/p>\n Amazon’s Prime Day<\/a> sales event took place in July after the second quarter ended, so the company might not go into details about the event’s financial performance.<\/p>\n This year’s sale lasted four days<\/a>, making it Amazon’s longest-ever version of the event. That, plus consumers’ focus on deals as they continue to worry about tariffs, could get Jassy and others to talk a bit about how Prime Day went this year.<\/p>\n 2025-07-31T16:00:29Z<\/p>\n Jefferies eyeing strength in e-commerce<\/p>\n Boxes on a conveyor belt at an Amazon fulfillment center<\/p>\n Bloomberg\/Getty<\/p>\n Brent Thill, senior technology research analyst at Jefferies, said that tariff impacts and price increases<\/a> have largely not materialized. Consumer demand has remained resilient, and inventory levels are stable going into the second half of the year.<\/p>\n “Tariffs appear overstated for now, and Amazon<\/a> remains the go-to destination for online deals and continues to draw strong consumer and brand engagement,” Thill wrote in a recent note.<\/p>\n Thill sees AWS emerging as the preferred platform for complex AI workloads, meaning that enterprise customers are increasingly turning to Amazon as they look to integrate AI into their business model.<\/p>\n Jefferies maintains its “Buy” rating and has a price target of $265 for the stock, implying upside of about 14%.<\/p>\n 2025-07-31T15:30:57Z<\/p>\n Investors will be listening for Amazon’s latest tariff plans<\/p>\n Amazon’s latest plans to deal with tariffs, and potentially raise prices<\/a>, as so many other companies have done, are likely to be a key theme on the earnings call.<\/p>\n Some Amazon customers loaded up earlier this year on items that could get hit with President Donald Trump’s tariffs, CEO Andy Jassy said in May. He said Amazon’s product selection<\/a> and ability to source from sellers in China give it an edge over other retailers, especially when it comes to offering low prices.<\/p>\n Jassy also said then that it wasn’t clear exactly what effect tariffs would have on the prices of products sold on Amazon. The company’s guidance for the second quarter was below what analysts were hoping for, in part because Amazon was waiting to see what would happen with tariffs.<\/p>\n Three months later, on the eve of another trade negotiation deadline, investors will be listening for an update.<\/p>\n 2025-07-31T15:00:52Z<\/p>\n UBS says Amazon is the “most coiled” Big Tech name<\/p>\n Amazon and FedEx delivery trucks<\/p>\n Jeffrey Greenberg\/Universal Images Group via Getty Images<\/p>\n Amazon is shaping up to be one of the most undervalued Magnificent Seven companies, UBS analyst Stephen Ju said.<\/p>\n The stock’s valuation was deeply revised downwards at the height of tariff volatility earlier this year, but it’s poised for a comeback as trade deals solidify.<\/p>\n “We believe Amazon to be ‘most-coiled’ among our coverage given the more extensive investments across e-commerce<\/a>, AWS<\/a>, content\/advertising, and Kuiper,” Ju wrote.<\/p>\n UBS expects AI spending to continue rising. Ju is raising his 2025 capex forecast for Amazon from $107 billion to $112 billion, citing improving cloud infrastructure sentiment.<\/p>\n The bank reiterated its “Buy” rating and raised its price target from $249 to $271, implying about 18% upside.<\/p>\n 2025-07-31T14:00:30Z<\/p>\n Amazon earnings estimate: Wall Street predicts sales of $162 billion, EPS of $1.33<\/p>\n Second quarter<\/strong><\/p>\n Third quarter<\/strong><\/p>\n Full year<\/strong><\/p>\n<\/li>\n
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