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.