Amazon is set to announce its fourth-quarter earnings on Thursday, and Wall Street anticipates positive results due to strong holiday demand and growth in advertising revenue. Analysts are particularly optimistic about the growth potential of Amazon Web Services (AWS) and believe it will significantly contribute to earnings in both the fourth quarter and 2025. Bank of America expects Amazon to exceed operating profit estimates of $19. 7 billion, with quarterly sales around $187 billion. Investors will likely focus on AWS growth, advancements in artificial intelligence (AI), advertising revenue, and future spending forecasts. They highlight growing partnerships and enhanced GPU supply as key drivers. Deutsche Bank is also predicting an earnings beat, driven by improved consumer sentiment and demand for AI, forecasting operating income of $21 billion.

They emphasize the acceleration in Gen AI demand and AWS's AI services as crucial factors. Wedbush Securities anticipates significant margin expansion, projecting operating income of $20. 7 billion, which is above consensus estimates. They assert that retail strength and higher-margin services will support performance, with an increased price target of $280. Morgan Stanley notes that Amazon's investment in robotics could significantly enhance efficiency in its warehouses, potentially leading to $10 billion in savings by 2030. They maintain an "Overweight" rating with a price target of $280. Mizuho highlights improving ad spending and pricing trends as positive indicators for consumer health and e-commerce performance, recommending a target price of $285. Overall, major analysts maintain bullish views on Amazon, reflecting confidence in its growth prospects, driven by AWS, AI advancements, and robust retail performance.