Amazon shares are up about 8% for the year after rising following Q2 earnings and then slowly selling off, and the author argues the trend could reverse when Amazon reports Q3 earnings on Oct. 29. AWS accounted for 60% of Amazon's Q2 operating income despite making up only 21% of revenue, and its growth accelerated from 24% in Q4 2025 to 28% in Q1 2026 and 37% in Q2. Amazon is spending about $220 billion this year to expand its computing infrastructure. Because gains on its Anthropic investment are booked as profits, the author values the stock on operating income rather than the price-to-earnings ratio, and he is bullish on Amazon's long-term outlook, with AWS expected to take the company to the next level.
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Keywords
AMZNcloud computingvaluationearningsAI investment
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/23/2026 | 248.04 |
| Change that session | -0.93% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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