Amazon Earnings: What to Watch -- WSJ

Dow Jones00:34

By Dan Gallagher

Amazon.com is due to report earnings after the close. It is the last of the $1 trillion-plus tech companies to report this season, barring Nvidia and Broadcom, which have different financial calendars.

Amazon will be watched for any ramp-up in capital spending tied to artificial intelligence, after Google parent Alphabet and Facebook parent Meta Platforms both forecast big jumps in this area.

The e-commerce company doesn't usually give exact capex projections, but executives have used previous earnings calls to indicate if spending is headed up or down.

Investors worry Amazon could show similar weakness in cloud-computing revenue to Microsoft and Alphabet. Both missed Wall Street targets in this key area, weighing on their stocks.

Key figures to watch:

-- Revenue is seen up 10% from a year earlier, at $187.3 billion, according to consensus estimates from FactSet.

-- Operating income is expected to jump 44% to $19 billion.

-- That would lift the operating margin to 10%, only the third time in Amazon's history this key figure has hit double digits.

-- Earnings per share are seen jumping by nearly a half to $1.49.

-- Revenue for AWS, the closely watched cloud-computing business, is seen up almost a fifth, at $28.8 billion.

-- At $22 billion, quarterly capex is expected to bring the annual total above $77 billion.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

February 06, 2025 11:34 ET (16:34 GMT)

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