On the eve of its third quarter (Q3) report, Amazon (NASDAQ:AMZN)'s stock experienced a 5% decline, fueled by an ongoing Federal Trade Commission (FTC) antitrust lawsuit and concerns about the performance of its Amazon Web Services (AWS) division. The apprehension around AWS was sparked by recent cloud results from Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT), particularly due to Google's slowdown.
Thomas Champion, an analyst at Piper Sandler, anticipates 'flattish' AWS growth instead of a Q3 bounce-back. Despite the potential turbulence, Amazon's earnings per share are projected to increase from last year's 28 cents to 59 cents. Furthermore, revenue is forecasted to rise from $127.1 billion to $141.5 billion.
While the FTC lawsuit and AWS performance concerns loom, the majority of analysts remain optimistic about Amazon. The company's stock has remained unchanged over the past year but has experienced a substantial 44% surge this year. This optimism suggests that despite immediate challenges, market watchers still see potential in the e-commerce giant's performance.
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