Amazon Stock Gains Ahead of Q3 Earnings on AWS Growth Hope

Several analysts and market observers remain bullish on Amazon (AMZN) stock ahead of its upcoming third-quarter earnings report, expecting it to be a catalyst for a share price rebound. Daniel Kurnos of Benchmark calls AMZN a "must add" stock, projecting that AWS will deliver 20% or more year-over-year growth, surpassing Wall Street estimates, while other business segments like advertising and operating margins could also drive gains. Despite Amazon being the worst-performing mega-cap tech stock among the Magnificent Seven this year, the consensus rating is a Strong Buy with an average price target implying roughly 20% upside. The stock has recently seen mixed performance but maintains strong long-term growth, with a current price-to-earnings ratio lower than its industry peers, suggesting potential undervaluation or tempered growth expectations. Market commentators highlight Amazon's ongoing diversification—including new grocery delivery services, partnerships, and leadership in AI and cloud computing—as solid foundations for sustained growth, even amid competitive challenges and broader market uncertainties. Investors are advised to consider multiple metrics and market factors when evaluating Amazon's stock amid optimism for strong quarterly results and strategic advancements.