Amazon earnings are in focus as the tech company prepares to report second-quarter results after the market closes on July 30. Consensus forecasts call for earnings of $1.81 per share, up 7.74% year over year, on revenue of $195.97 billion, a 16.8% increase from the same period last year.
Where options data suggests Amazon earnings stock is headed
Despite a relatively subdued performance so far this year, options pricing points to a potential rebound following the upcoming report.
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Options data shows a put-to-call ratio of 0.44 for contracts expiring July 31, indicating a pronounced bullish tilt. The upper bound on those contracts is a little over $246 at the time of writing, implying scope for a gain of more than 6% in the days after results.
At the same time, shares are trading well below major moving averages, and a relative strength index in the high 30s reflects sustained selling pressure heading into the release.
What to look for in Amazon’s earnings
Amazon is trading at a forward price-to-earnings multiple of about 31, a richer valuation than cloud competitors such as Microsoft and Alphabet’s Google. Even so, performance at Amazon Web Services will be central to how the stock trades in the second half of 2026.
Investors will be watching for signs that rising artificial intelligence demand is feeding into faster cloud revenue growth and wider margins. Strong AWS momentum would support the company’s heavy AI infrastructure spending and may ease worries that elevated capital expenditures are weighing on near-term profitability without sufficient returns.
Such results would bolster confidence in management’s long-term AI strategy and could underpin further upside for AMZN.
How Wall Street recommends playing AMZN shares
Analysts remain broadly positive heading into the quarter. The consensus rating stands at Strong Buy, and the average price target of $315 suggests meaningful upside over the next 12 months.
Editor’s note: This article is for informational purposes only and does not constitute investment advice.