Although analysts expect Amazon’s revenue to increase compared to the same quarter last year, the company’s website traffic data points to less robust performance in the third quarter. It should be noted that investors can use TipRanks’ Website Traffic Tool to gain insight into a company’s upcoming earnings report. The tool provides information on how a company’s website domain has performed over a specific time frame.

For AMZN, TipRanks’ traffic screener shows a sequential increase in visits but a year-over-year decline in the third quarter. Specifically, visits to amazon.com fell 0.84% ​​compared to the third quarter of last year, possibly reflecting the impact of economic uncertainty and increasing competition from companies like Microsoft (MSFT) and Alphabet (GOOGL) in the cloud sector.

Key takeaways from TipRanks’ Bulls & Bears tool

According to TipRanks’ Bulls Say, Bears Say tool, bullish analysts believe Amazon’s profit margins are improving, driven by strong growth in both advertising and cloud services. They claim that rising demand for AI-powered cloud solutions increases confidence in AWS, making the stock more attractive. In contrast, bearish analysts highlight challenges such as escalating competition, rising labor costs and persistent regulatory hurdles that could negatively impact Amazon’s performance.

Nevertheless, if Amazon can maintain robust growth in its AWS segment while continuing to improve margins, the company could report strong third-quarter results, potentially sending its stock price to new highs.

AMZN’s stock price is rising despite competitive pressure

Amazon’s stock price has shown consistent growth even amid increasing competition in the retail and cloud sectors. The stock is up about 44% over the past year and 25% since the beginning of the year, mainly due to effective cost-saving initiatives and streamlined operations. Furthermore, the company’s focus on its cloud segment, especially Amazon Web Services (AWS), has significantly strengthened its profitability.

Options traders anticipate a big move

Using TipRanks’ Options tool, we can see what option traders expect to see immediately after the stock’s earnings report. The expected earnings movement is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry: the Options tool does this for you.

In fact, it currently says that options traders are expecting a move of 6.68% in either direction.

Is Amazon a Buy or a Sell Now?

As for Wall Street, Amazon stock has a Strong Buy consensus rating. Of the 48 analysts covering the stock, 46 have a buy rating and two have a hold rating. Moreover, the average AMZN price target of $224.14 implies an upside potential of 17.46%.

See more AMZN analyst ratings

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