Amazon (AMZN) is set to report its Q2 earnings this week along with other big tech firms, and Wall Street has lofty expectations. Bank of America has issued a new client note detailing several key indicators to look out for from the e-commerce giant’s earnings report.

Amazon is poised for strong earnings growth, driven by its retail and digital advertising sectors, and is making strategic moves into the AI wearable market with the acquisition of Bee. Analysts project a 14% increase in earnings for Amazon, contributing significantly to the overall growth of the Magnificent 7 tech companies this quarter. In addition, analysts hold a positive outlook on Amazon, with most price targets suggesting growth following the report.

According to Bank of America, here are some numbers to watch that could dictate where AMZN stock goes next.

1. AI Investing

We’ve seen AI take the center stage at several big tech companies over the last year. Amazon (AMZN) is one of the top institutional investors in AI. AI adoption has been an amazing tailwind in a historically tepid quarter. The expansion of generative AI, from foundational models to smarter analytics, continues pushing enterprise momentum.

While some companies like Alphabet (GOOGL) saw drops after revealing their AI expenditure, Amazon could see the opposite, as its work in AI has been viewed in a positive light throughout Wall Street.

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2. AWS

In addition, BofA expects AWS growth to continue accelerating at the back end of the year, giving investors potentially double upside from cloud and retail. The operating returns on AWS services have been higher than its seasoned e-commerce business, signaling a major perspective shift.

3.

Year-to-date, Amazon (AMZN) stock is only up 3.7%. The stock has struggled this year, from Trump’s tariffs to trade wars and the mass stock market meltdown. Despite the odds, its valuation holds up and analysts remain bullish. On July 21, Baird analyst Colin Sebastian maintained an “Outperform” on the stock and raised the price target from $220.00 to a new target of $244.00.