Amazon (AMZN) Earnings Today As Market Falters Near Highs

Amazon (AMZN) will be the next Magnificent Seven company to deliver quarterly earnings after today’s close, with the Street looking for EPS of $1.98 against last year’s figure of $1.86 (+6.4%), and for revenue of $211.46B vs. $187.79B year-over-year (+12.6%). However, the e-commerce titan approaches this report as the Mag 7’s second-worst performer during the past year as traders eagerly await updates about its artificial intelligence strategy and developments.

Amazon has grown far beyond its relatively humble beginnings as an online book seller and is now a force to be reckoned with in not only retail but also cloud computing infrastructure through Amazon Web Services (AWS), streaming video through Amazon Prime, physical grocery stores like Whole Foods and online grocery delivery, consumer hardware with its Kindle/Echo/Ring devices, pharmaceuticals, and too much more to get into – not to mention the massive complexity of its logistics, fulfillment, and delivery frameworks.

AWS results are always one of Amazon’s most important metrics, as a Bank of America report recently predicted it to come in slightly above expectations and that growth will accelerate in 2026. Meanwhile, a JPMorgan analyst noted that recent AWS price increases are encouraging for earnings as it suggests strong demand. 

Holiday shopping results are expected to come in at record-breaking highs, with the overall e-commerce segment seeming strong. Traders are also likely to be looking for any updates about Amazon’s A.I. efforts, as the company has invested heavily in A.I. infrastructure. 

There also are worries that this new technology will result in job losses for broad swaths of the economy. Amazon cut 16,000 jobs as part of a management reorganization in January, according to the Challenger Job Cuts report. It noted that although CEO Andy Jassy said A.I. will cost jobs in the future, this particular round of layoffs seems to have been due to overhiring and an attempt to reduce layers. 

The options market projects a potential move of about +/- $20, which gives a range of roughly 205 to 245 (8.9%) for Friday’s Feb. 6 expiration. Price has been traveling sideways in a triangular shape since last quarter, with important horizontal levels coming in at 225, 220, and 215 to the downside. Potential resistance could be found near January’s relative highs of 249 and the intraday highs of 258.

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