Amazon Q3 Earnings Preview: Cloud Growth Concerns and Job Cuts Loom
Amazon is set to report third-quarter earnings amid mounting investor skepticism. The e-commerce and cloud computing giant has underperformed its Magnificent 7 peers with just a 5% year-to-date stock gain. Wall Street anticipates $1.57 EPS on $178 billion revenue, representing 10% and 12% growth respectively.
Concerns center on AWS's slowing revenue growth compared to Microsoft Azure and Google Cloud. The company's conservative Q3 profit guidance and massive AI investments have left investors questioning returns. Recent reports of 14,000 job cuts—with plans to eliminate up to 30,000 positions—highlight aggressive cost-cutting measures.
Wolfe Research maintains a Buy rating with a $270 price target, betting on operational improvements by 2026. The earnings call will likely address cloud competitiveness, AI monetization, and restructuring efficacy.
