Analysts surveyed by FactSet expect Amazon (AMZN.O) to report earnings per share of $1.14, with revenue reaching $157.28 billion.

After the U.S. stock market closed on Thursday, Amazon is set to release its third-quarter financial report, which is an opportunity for the tech giant to prove itself. Analysts predict that Amazon's third-quarter earnings per share will be $1.14, with revenue of $157.28 billion, compared to last year's earnings per share of 94 cents and revenue of $143.08 billion.

One of the main focus points is the growth of Amazon's cloud computing platform AWS. It is expected that its revenue will increase from $23.06 billion in the same period last year to $27.51 billion. The third-quarter financial report released by Google's parent company Alphabet (GOOGL.O) on Tuesday may bode well for AWS, with cloud business revenue exceeding expectations.

BofA Securities analyst Justin Post wrote in a research report on Wednesday: "We believe that the accelerated growth of Google Cloud is a positive signal for AWS, indicating an acceleration in demand for cloud and AI." He rates Amazon as a 'buy' with a target price of $210.

Canaccord Genuity analyst Maria Ripps predicted in a report on October 24th that AWS will see accelerated revenue growth for the fifth quarter, due to the growth in AI workloads and the gradual adoption of new AI capabilities. She also rates Amazon as a 'buy' with a target price of $230.

As the holidays approach, investors will also closely monitor Amazon's e-commerce business guidance. In August of this year, Amazon stated that due to inflationary pressures, customers are opting for more affordable items, leading to a decrease in average selling prices. Its online store revenue in the second quarter was $55.39 billion, below market expectations of $55.67 billion. Analysts expect this number to reach $59.67 billion in the third quarter.

Stephen Kalahan, trading expert at online brokerage Firstrade, mentioned that Amazon's retail profit margin was under pressure in the second quarter due to increased logistics costs and extensive promotional spending. He pointed out that "this quarter, Amazon may focus on cost control and reducing promotions to improve margins, without affecting revenue growth, which is particularly crucial before the holiday season."

This year, Amazon's stock price has risen by 27%, exceeding the 22% increase in the s&p 500 index. Despite outperforming the large cap in 2024, there are concerns about high AI expenses and potentially long-term weak consumer demand, leading to a recent decline in the stock price. Since hitting a historical high closing price of $200 on July 5th, it has dropped by 3.3%. The s&p 500 rose by 4.7% during the same period.

Amazon needs to surpass small earnings growth in order to reignite investor enthusiasm and drive the stock price higher.