Going Into Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?

Going Into Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?

Amazon AMZN is set to release its fiscal fourth-quarter 2025 earnings report on Feb. 5. Here’s Morningstar’s take on what to look for in Amazon’s earnings and the outlook for its stock.

Key Morningstar Metrics for Amazon

Amazon Earnings Release Date

  • Thursday, Feb. 5, after the close of trading

What to Watch for in Amazon’s Q4 Earnings

  • Margin improvements based on efficiency gains have been a major theme for Amazon for the last year. We expect more to come, and it will be good to get a pulse on this. Project Kuiper expenses should weigh on margins. We’re also looking for any other guidance for artificial intelligence and capital expenditures.
  • We’ll be looking for AWS margins, which can be uneven. AWS performance is also key for the stock. Last quarter, CEO Andy Jassey said he thought the 20% year-over-year growth was “sustainable for a while.” As software has faltered, shares of Amazon have been more stable since July, and they are up 40% over the last nine months, so…

https://www.morningstar.com/stocks/going-into-earnings-is-amazon-stock-buy-sell-or-fairly-valued-9