Amazon Earnings Reports Loom Large Over Stock Price Expectations

Amazon's upcoming earnings reports are expected to be crucial for investors as they provide insight into the company's performance, particularly in its cloud computing business Amazon Web Services (AWS) and its capital spending plans. On July 30, 2026, management raised its capital spending estimate for 2026 to about $220 billion due to higher costs of memory chips.

AWS growth is a key metric to watch in the October report, with a rate below 36.7% potentially ending five consecutive quarters of faster growth. Amazon's fourth quarter is also expected to be its heaviest retail quarter, with operating income possibly lower than the third quarter due to increased transportation and labor costs.

Investors should plan for a potential fall in Amazon stock prices, with a drop of around 20% considered possible based on past performance. The upcoming earnings reports will provide valuable information on both AWS growth and capital spending plans, allowing investors to make more informed decisions.