Amazon Set to Report Q3 2024 Earnings: What to Expect and Market Reactions

Amazon is poised to release its Q3 2024 earnings report after the market close on October 31, 2024. Investors and analysts are closely watching the report, particularly in light of recent market dynamics and the performance of other tech giants. Concerns about Amazon’s cloud business, especially following Microsoft‘s recent earnings report, have led to some caution in the market.

The options market is indicating a significant potential move in Amazon’s stock price post-earnings. Pre-earnings options volume is normal, with calls leading puts by a ratio of 9:5. Implied volatility suggests the market is anticipating a move of around 5.8%, or $10.75, after the results are released. Historically, Amazon’s stock has moved by a median of 7.3% over the past eight quarters following earnings reports.

Wall Street analysts are also weighing in on what to expect from Amazon’s earnings. Key areas of focus include the performance of Amazon Web Services (AWS), the company’s e-commerce segment, and any updates on its artificial intelligence (AI) initiatives. The earnings call, scheduled to take place after the market close, will provide further insights into these areas and potentially influence the stock’s direction.

In the lead-up to the earnings report, Amazon’s stock has experienced some volatility, partly due to broader tech sector trends and specific concerns about cloud computing competition. The report will be closely scrutinized for any signs of growth or challenges in these critical segments.