Amazon (AMZN) will reveal its Q3 2024 earnings report on Oct. 31, 2024. Analysts anticipate another strong quarter for the company, with its focus shifting towards higher-margin services and Amazon Web Services (AWS). Market expectations are becoming more realistic compared to Q2, but analysts continue to be optimistic about the company’s performance over the last quarter.

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What Can We Expect From Amazon’s Q3 Earnings Report?

Market experts anticipate AWS to play a major role in the Q3 report, which accounts for two-thirds of the company’s profitability.

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Despite an optimistic outlook, TipRanks has expressed concerns about AWS’s margins, which were “unsustainably high” earlier this year. AWS’s margins were about 37.6% in Q1 before sliding to about 35.5% in Q2. Market participants expect this figure to continue dipping.

According to Amazon’s estimates, the company’s operating income for Q3 could be between $11.5 billion and $15 billion.

The company’s Chief Executive Officer, Andy Jassy, highlighted three macro trends that could boost growth. These include cost optimization efforts, modernizing infrastructure, and leveraging AI (artificial intelligence).

Can The Stock Hit $200 Before The Q3 Earnings Report?

According to TipRanks, Amazon (AMZN) continues to be a “Strong Buy” for Wall Street, based on 47 analysts. Of the 47 analysts, 45 have a “Buy” rating, while two have a “Hold” rating.

According to TipRanks’ estimates, AMZN could reach an average price of $224.38 in the 12-month forecast. A rise of about 18.79% from current price levels would be achieved.

On the high end, the platform anticipates AMZN to hit $265.00. Reaching $265.00 from current price levels will lead to a rally of about 40.22%.

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On the low end, TipRanks believes AMZN could hit a low of about $183.00. Sliding to $183.00 will entail a drop of about 3.12% from current price levels.