From The Motley Fool · Anthony Di Pizio · · 1m 20s
Amazon Stock Before Oct 29
Amazon's AI cloud growth could make stock a buy ahead of Oct 29 report.
In brief
Amazon's AI cloud growth could make stock a buy ahead of Oct 29 report. Amazon stock may be a solid buy before Oct 29 earnings due to strong AWS growth, but long-term returns take 5-10 years. Originally reported by The Motley Fool.
Amazon earnings season
Corporate America enters earnings season for the quarter ended Sept 30 amid elevated inflation, rising interest rates, and AI industry turbulence.
Amazon's AI focus
Amazon operates an industry-leading cloud platform, develops its own large language models, and designs data center chips for AI.
AWS revenue growth
AWS generated $42.2 billion in Q2 2026 revenue, up 37% year-over-year, with a triple-digit order backlog increase.
AWS order backlog
AWS has a $496 billion order backlog as of June 30, up triple-digit year-over-year, signaling potential revenue acceleration.
Amazon stock valuation
Amazon stock trades at a P/E ratio of 21.2, cheaper than the Nasdaq-100's 30.2, but with paper gains from Anthropic investments.
Earnings forecast
Wall Street forecasts Amazon's earnings to decline to $10.55 per share in 2027, but stock remains attractively valued with a forward P/E of 25.
What happens next
Amazon's stock could be a solid buy ahead of Oct 29 earnings, but long-term returns take 5-10 years.
The essence
Amazon stock may be a solid buy before Oct 29 earnings due to strong AWS growth, but long-term returns take 5-10 years.
