{"id":1433,"date":"2025-07-31T18:31:44","date_gmt":"2025-07-31T18:31:44","guid":{"rendered":"https:\/\/www.finznest.com\/blog\/amazon-earnings-preview-cloud-bet-faces-high-bar-after-microsofts-results\/"},"modified":"2025-07-31T18:31:44","modified_gmt":"2025-07-31T18:31:44","slug":"amazon-earnings-preview-cloud-bet-faces-high-bar-after-microsofts-results","status":"publish","type":"post","link":"https:\/\/www.finznest.com\/blog\/amazon-earnings-preview-cloud-bet-faces-high-bar-after-microsofts-results\/","title":{"rendered":"Amazon Earnings Preview: Cloud Bet Faces High Bar After Microsoft\u2019s Results"},"content":{"rendered":"
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After strong results from (NASDAQ:) and (NASDAQ:) yesterday, both stocks jumped in after-hours trading. Now, investors are looking ahead to Amazon.com (NASDAQ:) and Apple (NASDAQ:) earnings, which are due after the closing bell.<\/p>\n

Amazon shares were already rising last night. The stock gained nearly 3% in pre-market trading, recovering from a small drop earlier in the day. The move came after Microsoft\u2019s earnings, which boosted confidence in Amazon\u2019s cloud business, too.<\/p>\n

Cloud was the most significant growth driver for Microsoft in Q2, and investors are hoping Amazon shows a similar trend. Cloud remains a key profit source for both companies.<\/p>\n

Analysts expect Amazon to report Q2 sales of $162.1 billion, up 9.5% from last year. Earnings per share are forecast at $1.32, slightly above the $1.26 reported a year ago.<\/p>\n

<\/p>\n

Source: InvestingPro<\/em><\/p>\n

It is also worth pointing out that Amazon often beats analyst estimates. The company has topped earnings expectations for nine straight quarters and has exceeded revenue forecasts in eight of the last nine.<\/p>\n

\"Amazon<\/p>\n

Source: InvestingPro<\/em><\/p>\n

To get a clearer view of how Amazon\u2019s Q2 results might affect its stock, it helps to look at its valuation.<\/p>\n

Analysts currently have an average price target of $252.03 for Amazon, which is under 10% higher than its current price. InvestingPro\u2019s Fair Value estimate, based on several standard valuation models, puts the stock at $246.28\u2014about 7% above where it closed last night.<\/p>\n

\"Amazon<\/p>\n

Source: InvestingPro<\/em><\/p>\n

Based on analyst targets and valuation models, Amazon\u2019s room to rise appears limited. The expected boost in the share price ahead of Thursday\u2019s session may already be pricing in some optimism.<\/p>\n

This means tonight\u2019s results would need to strongly beat expectations\u2014possibly by a wide margin\u2014to trigger a meaningful rally.<\/p>\n

That doesn\u2019t make Amazon a poor investment, but it does suggest there may be more attractive opportunities elsewhere this earnings season.<\/p>\n

How to Quickly Find Stocks Set to Rally on Q2 Results<\/strong><\/h2>\n

InvestingPro\u2019s AI ProPicks has once again proven effective at spotting big post-earnings movers.<\/p>\n

For instance, Cadence Design Systems Inc (NASDAQ:),<\/strong> flagged on July 1 under both the \u201cTech Titans\u201d<\/strong> and \u201cBeat the S&P 500\u201d<\/strong> strategies, surged over 9% two days ago and is now up more than 20% this month.<\/p>\n

Another standout example: Medpace Holdings Inc (NASDAQ:),<\/strong> which jumped 54.67% on July 22 following its Q2 report, shortly after being picked under the \u201cBest Value Stocks\u201d strategy.<\/p>\n

These are just two standouts. A full recap of July\u2019s top-performing ProPicks will be shared in the August rebalancing update.<\/p>\n

More importantly, tomorrow also brings the August refresh for all ProPicks AI strategies. Each of the 30+ portfolios will be re-analysed, with new stocks added and underperformers removed based on the latest data and market trends.<\/p>\n

Today is the perfect opportunity to subscribe to InvestingPro and get instant access to the new AI-powered stock picks, set to be revealed in the August rebalancing update. With the summer sale still on, you can save up to 50%.<\/p>\n

InvestingPro members also unlock a powerful suite of tools designed to support smarter, faster investing decisions, like the following:<\/p>\n

Built on 25+ years of financial data, ProPicks AI uses a machine-learning model to spot high-potential stocks using every industry-recognized metric known to the big funds and professional investors. Updated monthly, each pick includes a clear rationale.<\/p>\n

The InvestingPro Fair Value model gives you a clear, data-backed answer. By combining insights from up to 15 industry-recognized valuation models, it delivers a professional-grade estimate of what any stock is truly worth.<\/p>\n

WarrenAI is our generative AI trained specifically for the financial markets. As a Pro user, you get 500 prompts each month. Free users get 10 prompts.<\/p>\n

The Financial Health Score is a single, data-driven number that reflects a company\u2019s overall financial strength.<\/p>\n

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    \"Summer<\/p>\n

    Disclaimer:<\/strong> This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk is at the investor\u2019s own risk. We also do not provide any investment advisory services.<\/p>\n<\/div>\n