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Amazon earnings preview: Analysts watching AWS growth, retail margins, Project Kuiper

  • Analysts will be closely watching the revenue growth of Amazon's cloud computing unit, AWS, and the margins in its retail segment when the company reports its third quarter earnings.
  • Wall Street expects $157.3 billion in revenue and earnings per share of $1.14, with investors particularly interested in the impact of AI adoption on cloud computing giants.
  • Amazon is expected to see a 20% year-over-year revenue growth for AWS, driven by improvements in non-AI and AI workloads, a broad customer base, and ongoing chip innovation.
  • Analysts also anticipate merchandise margin pressure due to Amazon's focus on lower-priced, lower-margin essentials and expect revenue from Project Kuiper, the satellite internet business, to offset costs in the future.

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