Amazon Poised for Strong Fourth-Quarter Earnings, Analysts Predict
As Amazon prepares to release its fourth-quarter earnings report, Wall Street analysts are expressing optimism about the e-commerce giant’s performance. Expectations are high, driven by strong holiday demand, growth in advertising revenue, and the continued expansion of Amazon Web Services (AWS).
Bank of America anticipates Amazon will surpass operating profit estimates, citing a robust holiday season as a key factor. The bank maintains a “Buy” rating on Amazon stock, with a price target set above current market levels. Analysts are particularly interested in AWS growth, AI scaling efforts, and the 2025 expenditure outlook.
Deutsche Bank echoes this positive sentiment, forecasting an earnings beat due to a strong U.S. consumer backdrop and increasing AI demand. The bank expects AWS margins and retail profits to exceed expectations, noting a broad-based acceleration in AI adoption as a significant driver. Deutsche Bank has set a price target considerably higher than current trading levels.
Wedbush Securities suggests that investors may be “overly conservative” in their outlook, potentially overlooking margin upside for 2025. The firm projects fourth-quarter operating income to surpass consensus estimates, driven by retail efficiency and a successful holiday season. Wedbush maintains an “Outperform” rating on Amazon stock, recently raising its price target.
Morgan Stanley highlights Amazon’s focus on robotics in warehouses as an often-overlooked advantage. The investment bank believes that automation could significantly impact long-term EBIT potential, leading to its “Overweight” rating and a price target indicating substantial upside.
Mizuho Securities points to improving ad-spend growth as a positive indicator for e-commerce, suggesting a normalization of consumer spending. The firm cites AWS outperformance, retail margin expansion, and capital efficiency as key positives for Amazon. Mizuho maintains an “Outperform” rating with a price target notably above current levels.
As Amazon’s earnings report approaches, these analyst predictions underscore the market’s high expectations for the tech giant’s fourth-quarter performance and future growth prospects.
