Amazon Q4 Earnings Preview: AWS Growth and Cost-Cutting in Focus
Amazon.com Inc. is set to report fourth-quarter earnings after Thursday's market close, with Wall Street anticipating $211.4 billion in revenue and adjusted EPS of $1.97. The spotlight remains firmly on Amazon Web Services, the cloud computing division that outperformed expectations last quarter with $33 billion revenue against a $32.5 billion estimate.
UBS analyst Stephen Ju likened Amazon to a "coiled spring" ahead of earnings, raising his price target to $311 while maintaining a Buy rating. The bullish outlook stems from AWS's planned capacity doubling by 2027, accompanied by a revised capital expenditure forecast climbing from $300 billion to $344 billion through 2027.
Meanwhile, the e-commerce giant continues streamlining operations, having announced 16,000 corporate job cuts to reduce bureaucratic layers. This dual focus—growth engine investment paired with operational discipline—frames the narrative as investors weigh cloud potential against macroeconomic pressures.