TLDR
- Amazon (AMZN) stock was trading at $257.82, down 2%, a week before its Oct. 29 earnings report.
- Analysts expect EPS of $1.96 and revenue of $202.21 billion.
- AWS growth, the $220 billion capex plan and operating income guidance are the main focus.
- MACD is positive, with resistance at $259.50 and support at $244.50.
- Morningstar’s fair value estimate is $300, and the average Wall Street target is $335.62.
Amazon (AMZN) stock traded at $257.82 in recent trading, down 2%. The move comes a week before the company reports third-quarter results.
Amazon reports after the close on Oct. 29. Analysts expect earnings per share of $1.96 on revenue of $202.21 billion.
Last quarter set a high bar. Earnings per share came in at $5.75 against an estimate of $1.82. That figure included a $53.4 billion gain tied to Amazon’s Anthropic stake.
Revenue also topped forecasts at $200.61 billion, versus the $196.46 billion estimate. Not an easy act to follow.
What Wall Street Is Watching
AWS is the main event. Revenue grew 37% to $42.2 billion last quarter, its fastest pace in 18 quarters. Analysts expect growth of 30% to 35% this time.
Morningstar says the bar sits near the high 30s. AWS posted a 39.4% margin last quarter, while depreciation rose 67%.
Capital spending is the other big question. Amazon raised its 2026 capex outlook to $220 billion from $200 billion in July.
Morningstar says that raise reflected higher memory prices, not added capacity. Trailing free cash flow is slightly negative.
Third-quarter guidance calls for sales of $197 billion to $202 billion. Operating income is guided to $22.5 billion to $26.5 billion.
Prime Day moved into the second quarter this year, which Amazon said cost nearly 4 points of growth. Operating income has beaten the top of its guided range in each of the last eight quarters, per Morningstar.
Advertising rose 26% to $19.8 billion last quarter. It will get a close look too.
Technical Picture and Analyst Views
Amazon trades about 1.1% above its 20-day average of $254.46 and 0.4% above its 50-day at $256.33. It sits 5.8% above the 200-day average of $243.21. MACD is above its signal line with a positive histogram, which suggests downside pressure is easing.
Resistance sits at $259.50, just above the current price. Support is at $244.50, near the 200-day average. A break below $244.50 could open the door to a test of the 200-day line, while a move above $259.50 would show buyers taking control.
Morningstar rates the stock four stars with a $300 fair value estimate. At about $262, it said the stock trades 16% to 17% below that level.
Wall Street’s average price target is $335.62 with a Buy rating. Morgan Stanley raised its target to $350 on Oct. 19, while Wells Fargo cut to $329 and Cantor Fitzgerald to $310 on Oct. 12.
Amazon stock is up 8% this year and 20% over the past 12 months. Benzinga Pro data show it trading 1.73% lower at $257.82.
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