Trading Desk
Amazon: Lots to talk about
-
Wolfgang Hagl
Redaktor
The internet giant has so far lagged behind the bullish Wall Street 2025. Tomorrow’s figures could provide Amazon with the initial spark for a race to catch up.
“Crunch time on Wall Street: from this evening, the US stock market will be in full swing. First, the Fed will present its interest rate decision. While the second cut of the year is considered a foregone conclusion, the upcoming plethora of company reports could provide another bombshell. Five of the companies in the “Magnificant 7” group will present their figures by tomorrow. On top of this, Wall Street is eagerly awaiting President Donald Trump’s meeting with China’s ruler Xi Jinping, including a possible agreement in the trade dispute. The two leaders will meet in South Korea tomorrow, Thursday.
As far as the earnings season is concerned, Amazon is likely to receive a lot of attention. The internet giant will provide an insight into its latest business performance on Thursday after the US stock market closes. The company already made headlines yesterday when Amazon announced the reduction of 14,000 jobs in administration. During tomorrow’s call with CEO Andy Jassy, this step and the resulting savings potential are likely to be a topic of discussion. The top manager could also face probing questions in connection with the latest breakdown at Amazon Web Services (AWS). The disruption in the cloud division paralyzed large parts of the internet. At least 4,000 companies are said to have been affected, including video portals, gaming apps, messenger services and payment processors.
Piqued Wall Street
The problems are hitting Amazon at a time when AMS is at risk of falling behind the competition. In the second quarter of 2025, Microsoft and Google recorded stronger growth in the data cloud than the global top dog. Competition and cost pressure – AWS invests primarily in AI data centers – also caused the division’s margin to shrink. Wall Street reacted with pique, with Amazon shares plummeting by almost a tenth within two days of the presentation of the figures at the end of July.
On average, analysts expect revenue growth of 18% for AWS in the third quarter. This would mean that the division would have increased its pace by half a percentage point compared to the period from April to June 2025. For the group as a whole, which continues to be dominated by e-commerce, the consensus for the quarter under review indicates a 12% increase in revenue to USD 178 bn. Operating profit is expected to have swelled by 13.2% to just under USD 20 bn.
Clear rating consensus
J.P. Morgan believes that Amazon will exceed collective expectations. The major US bank describes the large cap as a “top idea” from the US internet sector. Its analysts believe that Amazon will be able to gain ground in the field of AI and that this will boost the growth of AWS even more. In addition, consumption would develop better than expected in a period dominated by rising prices and tariffs. Consequently, J.P. Morgan rates Amazon as “Overweight” with a target price of USD 265, which corresponds to the average target value issued by 71 research firms. There are practically no skeptical voices – with one exception, all analysts give the stock a thumbs up.
Investment Solution
Although such a one-sided opinion actually calls for caution, it is not advisable to go against the consensus in the current stock market environment. On the contrary, tomorrow’s results could provide the initial spark for a race to catch up. So far this year, Amazon has lagged far behind the broader market with a price gain of 4.5%. Traders can join the bull camp with the mini-future long with the
While there is a risk of heavy losses here if the company disappoints, the barrier reverse convertible with KZHDDU can cope with falling prices to a certain extent. The decisive factor is that Amazon does not fall to or below the barrier of USD 141.80 by the beginning of December 2026. If this calculation works, the UBS product will yield a sideways return of 10.1% p.a.
