Amazon earnings updates: Wall Street watching for cloud demand, advertising strength

JPMorgan is upbeat heading into the e-commerce giant’s results, pointing out that fundamentally bullish factors set the stage for a strong performance.

Though the bank’s first-quarter expectations fall short of consensus estimates, Amazon is positioned for strength down the road. JPMorgan analysts project $154 billion in net sales and $17.3 billion in operating income.

“We remain bullish as AMZN drives non-Al growth & tightens the GenAl gap, which supports improved AWS trends in 2H,” analysts wrote.

The bank expects AWS growth to pick up in the second half of the year, assuming macro uncertainty and supply disruptions ease.

While tariffs are the key threat in the near term, Amazon has options, JPMorgan said. Up to 40% of products are likely sourced from China, but the firm could pressure suppliers to assume these costs, reroute supply chains, cancel orders, or pass costs on to consumers.

JPMorgan rates Amazon “Overweight,” with a $220 price target for the stock.