Tech giant Amazon (AMZN) is set to report its second‑quarter 2025 earnings after the market closes on Thursday, July 31. Analysts expect revenue of $162.2 billion, which would be almost 10% higher than the same quarter last year. In addition, earnings per share are projected to increase 5.5% year-over-year to $1.33. When breaking down the numbers further, Amazon Web Services (AWS) is expected to generate about $30.7 billion in revenue, a 17% increase, and make up the bulk of the firm’s operating income, as per the image below. At the same time, advertising revenue is projected to grow by nearly 19%.
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Another potential bright spot could be Amazon’s improving retail business. In fact, North American retail operating profit rebounded to nearly 6% in Q1 after a difficult period. However, AWS margins may dip slightly to about 35% due to heavy spending on AI infrastructure. As a result, investors will be watching for updates on this year’s Prime Day results, as well as any new news about its AI products like Nova and Bedrock AgentCore. Furthermore, many will likely want to see if Amazon is balancing its big investments in AI with profitability.
Nevertheless, analysts seem to be optimistic, as Stifel, led by five-star analyst Mark Kelley, recently raised its price target on the stock from $245 to $262 while maintaining a Buy rating. Indeed, the firm said that third‑party data points to a stronger‑than‑expected second quarter, thanks to the Trump administration either delaying tariffs or securing better trade terms. Stifel also admitted that it had been too cautious with its earlier forecasts and has now raised some of its estimates ahead of earnings. Still, with the stock trading at about 36 times forward earnings, expectations remain high for the company.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 5.4% move in either direction.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 44 Buys and one Hold assigned in the past three months. Furthermore, the average AMZN stock price target of $259.39 per share implies 12.7% upside potential from current levels.
