Thu Oct 31 20:00:00 UTC 2024: ## Amazon’s Q3 Earnings Looming: Should Investors Buy Now or Wait?

**Amazon (AMZN)** is set to release its third-quarter earnings on October 31st, with analysts predicting a strong performance driven by continued growth in cloud computing (AWS) and advertising.

Despite a recent revenue miss in Q2, Amazon stock has staged a comeback, currently trading just 6% below its 52-week high. However, investors are closely watching for signs that Amazon might be losing market share in cloud computing to Microsoft’s Azure platform, and the potential impact of the company’s ambitious Kuiper satellite internet project on margins.

**Key Metrics to Watch:**

* **Earnings per share (EPS):** Analysts expect EPS of $1.14, representing a 21.3% increase from the year-ago period.
* **Revenue:** Analysts predict revenue of $157.2 billion, a 9.8% increase year-over-year.
* **AWS performance:** Strong AWS growth is crucial for Amazon’s overall profitability.
* **Advertising revenue:** Digital advertising revenue has been a key growth driver for Amazon, and analysts are watching for continued momentum in this segment.
* **Kuiper Project:** Investors are interested in updates on the project’s progress and potential impact on operating margins.
* **Fourth-quarter guidance:** Amazon’s guidance for the upcoming quarter will be crucial in determining future investor sentiment.

**Amazon’s Long-Term Outlook:**

* **Continued AWS Growth:** AWS remains a key driver for Amazon, with strong backlog and accelerating revenue growth.
* **Rising Advertising Revenue:** The expansion of Prime Video ads and strong growth in online advertising are expected to continue bolstering profitability.
* **Kuiper Project Potential:** Kuiper has the potential to become a significant revenue generator in the long term, though it will likely take time to become profitable.

**Investment Strategy:**

Many analysts believe buying AMZN stock **after** earnings release may be the best strategy, as it allows investors to evaluate the company’s performance and future guidance before committing.

While Amazon stock is considered a compelling buy for the long term, investors should consider the potential risks and do their own due diligence before investing.

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