N※N

Why Amazon's stock is a 'coiled spring' ahead of earnings, according to analysts

  //stocks-investing.news-articles.net/content/202 .. ing-ahead-of-earnings-according-to-analysts.html
  Published in Stocks and Investing on Wednesday, October 29th 2025 at 6:54 GMT by MarketWatch
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

2025-10-29 275 x 183 / 6830 Bytes

2025-10-29 312 x 66 / 11820 Bytes

2025-10-29 224 x 224 / 8009 Bytes

2025-10-29 299 x 168 / 13520 Bytes

Amazon’s Stock Is a Coiled Spring Ahead of Earnings, Analysts Say

Amazon (NASDAQ: AMZN) has been moving steadily through a period of market uncertainty, trading within a tight range while keeping pace with its 200‑day moving average. With the company’s earnings release on the horizon—scheduled for June 26, 2025—analysts are describing the stock as a “coiled spring” poised to snap forward once the quarterly results are disclosed.

The MarketWatch article “Why Amazon’s Stock Is a Coiled Spring Ahead of Earnings, According to Analysts” highlights several key factors that could fuel a rally. First and foremost, Amazon’s diversified revenue streams have demonstrated resilience in the face of higher inflation and rising interest rates. The company’s cloud services unit, Amazon Web Services (AWS), remains the most profitable segment, with earnings growth outpacing the broader business. Analysts project AWS revenue to climb 12–15% YoY in the next quarter, a figure that would help offset margin compression in its retail arm.

Advertising has become an increasingly important engine of growth. In the most recent quarter, Amazon’s advertising revenue rose 26% YoY to $1.4 billion, and the company is now pursuing aggressive expansion into AI‑driven ad products. This segment is expected to double in size by 2027, adding a high‑margin layer to the company’s earnings profile. The MarketWatch piece notes that the advertising surge has already pushed the stock price 3% higher in the past week, reflecting positive sentiment around the growth potential.

Logistics and Prime Delivery represent another bright spot. Amazon’s proprietary delivery network—often referred to as “Amazon Logistics”—has grown to serve over 300,000 package deliveries per day in the United States alone. Analysts believe that the expanding network not only reduces shipping costs but also provides a valuable data source for future growth. The article cites an Amazon spokesperson who said, “Our logistics capabilities are a differentiator that will keep us competitive as e‑commerce demand continues to rise.”

When it comes to the earnings outlook itself, consensus estimates for the fourth quarter are robust. Roughly 80% of analysts project revenue in the $135–140 billion range, representing an 8–10% YoY increase. Earnings per share (EPS) is expected to be $6.55—an uptick of about 18% from the same quarter last year. The company’s guidance is further bolstered by a forecasted 3.5% increase in free cash flow, which analysts view as a sign of strong operational efficiency.

The article also touches on risk factors that could temper enthusiasm. Rising commodity prices, especially for packaging and transportation, could dampen retail margins. Furthermore, regulatory scrutiny—particularly concerning data privacy and antitrust concerns—remains a looming threat that could lead to higher compliance costs. However, many analysts believe these risks are outweighed by Amazon’s dominant market position and its continued investments in technology and infrastructure.

The MarketWatch piece concludes that the market is currently in a “waiting‑for‑action” mode. With the earnings release in just a few days, many investors are holding off on big moves, hoping for a positive surprise. If Amazon meets or exceeds the consensus figures, the stock could break out of its current trading range, potentially reaching the $3,200 level that several analysts have recently cited as a near‑term target. Conversely, a miss—especially in AWS or advertising—could result in a sharp pullback, underscoring the importance of the upcoming data.

In summary, the article portrays Amazon’s stock as a high‑potential asset that has accumulated strength behind a diversified business model. Analysts are banking on a favorable earnings announcement to unleash the “spring” and push the share price higher. Whether the market will answer the call remains to be seen, but the combination of robust revenue growth, expanding margin‑heavy segments, and a favorable earnings forecast has positioned Amazon as a compelling play for investors who are willing to wait for the next earnings cycle.