Amazon (AMZN) will release its fourth-quarter fiscal 2025 results after market close on Thursday, February 5. Analysts expect strong growth in sales and earnings from the tech giant. Investors will focus on cloud segment Amazon Web Services (AWS), advertising revenues, e-commerce, and operating margins. A key watchpoint is the company’s capital expenditure guidance, as AWS faces stiff competition from Microsoft (MSFT) Azure and Google (GOOGL) Cloud in the AI race.
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The Street expects Amazon to post adjusted earnings per share (EPS) of $1.97, higher than the prior year period’s figure of $1.86. Sales are forecast to rise 12.6% year-over-year to $211.44 billion. Notably, AMZN has beaten earnings expectations for eight straight quarters.
Analysts’ View Ahead of Results
Heading into the Q4 print, all analysts except one have reiterated their Buy ratings on AMZN stock. UBS analyst Stephen Ju raised his price target from $310 to $311, implying 30.3% upside potential. Ju updated Amazon’s valuation, incorporating higher AWS revenue and capex forecasts. This change lifts total capex estimates through late 2027 to $344 billion, driven by AWS’ plan to double capacity by 2027. He believes shares appear undervalued relative to AWS revenue potentially doubling by 2028, which could add about $20 billion in extra cash flow. There is also growth potential from online shopping, ads, video content, and satellite projects.
Similarly, Citizens JMP analyst Andrew Boone lifted his price target from $300 to $315, implying 32% upside potential. He highlighted The Information’s report that said Anthropic has raised its 2026 revenue forecast to at least $17 billion. Boone believes this is a positive for AWS, since it is Anthropic’s main computing partner. Anthropic plans to spend about $7 billion on inference and over $12 billion on training AI models in 2026. He expects Amazon to capture the majority of Anthropic’s spend.
Evercore ISI analyst Mark Mahaney maintained his $335 price target on AMZN, implying 40.4% upside potential. He highlighted that AWS growth is accelerating, with a significant backlog and AI demand driving positive momentum. Moreover, retail and advertising segments are showing impressive growth, aiding his bullish thesis.
What Is Amazon’s Stock Prediction?
On TipRanks, Amazon stock has a Strong Buy consensus rating based on 35 Buys and one Hold rating. The average Amazon price target of $298.53 implies 25.1% upside potential from current levels. Over the past year, AMZN shares have lost 1.4%.
