Is Amazon (AMZN) Stock a Buy Ahead of Earnings Thursday?

TLDR

• Amazon reports Q4 fiscal 2025 earnings on February 5 after market close, with analysts expecting EPS of $1.97 and revenue of $211.44 billion
• Wall Street maintains bullish stance with 35 Buy ratings and one Hold, average price target of $298.53 implies 25% upside
• UBS raised price target to $311 citing AWS revenue doubling potential by 2028 and increased capex estimates to $344 billion through 2027
• Citizens JMP lifted target to $315 based on Anthropic raising 2026 revenue forecast to $17 billion, with Amazon as main computing partner
• Amazon has beaten earnings expectations for eight consecutive quarters and missed revenue estimates only once in past two years

Amazon will report its fourth-quarter fiscal 2025 earnings after the market closes on Thursday, February 5. The tech giant faces high expectations from analysts who predict strong growth across multiple business segments.

Amazon.com, Inc., AMZN

Wall Street forecasts adjusted earnings per share of $1.97 for the quarter. This represents an increase from $1.86 in the same period last year. Revenue is projected to climb 12.6% year-over-year to $211.44 billion.

The company has built an impressive track record. Amazon has exceeded earnings expectations for eight straight quarters. Over the past two years, it has missed revenue estimates only once, beating forecasts by an average of 1.1%.

Last quarter, Amazon delivered solid results. The company reported revenue of $180.2 billion, up 13.4% year-over-year. This beat analyst expectations by 1.2%.

Analyst Price Target Increases

UBS analyst Stephen Ju raised his price target from $310 to $311. This suggests 30.3% upside potential from current levels. Ju updated his valuation based on higher AWS revenue and capital expenditure forecasts.

The analyst now projects total capex through late 2027 at $344 billion. This increase stems from AWS’ plan to double capacity by 2027. Ju believes the stock is undervalued given AWS revenue could potentially double by 2028, adding roughly $20 billion in extra cash flow.

Citizens JMP analyst Andrew Boone lifted his price target from $300 to $315. This implies 32% upside potential. Boone pointed to reports that Anthropic raised its 2026 revenue forecast to at least $17 billion.

Amazon serves as Anthropic’s primary computing partner. Anthropic plans to spend approximately $7 billion on inference and over $12 billion on training AI models in 2026. Boone expects Amazon to capture the majority of this spending through AWS.

Key Areas to Watch

Evercore ISI analyst Mark Mahaney maintained his $335 price target on the stock. This represents 40.4% upside potential. Mahaney highlighted accelerating AWS growth driven by a strong backlog and AI demand.

Investors will focus closely on several areas during the earnings call. AWS performance remains critical as the cloud segment faces competition from Microsoft Azure and Google Cloud in the AI race. Capital expenditure guidance will be scrutinized given the massive investments required for AI infrastructure.

Advertising revenue growth and e-commerce performance will also draw attention. Operating margins across all segments matter for profitability. The company’s guidance for the current quarter will help shape investor sentiment.

The consensus rating on TipRanks shows 35 Buy ratings and one Hold rating. The average price target of $298.53 implies 25.1% upside from current levels. Over the past year, Amazon shares have declined 1.4%.

Analysts covering Amazon have generally reconfirmed their estimates over the last 30 days. This suggests they expect the business to maintain its current trajectory. Revenue is forecast to grow 12.7% year-over-year this quarter, an improvement from the 10.5% increase recorded in the same quarter last year.

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