Amazon Stock: Analysts Split on Q4 Margins Despite Strong Performance

Amazon is set to release its quarterly earnings on October 31, with analysts divided in their expectations. Despite the e-commerce giant's impressive 24% stock price increase since the beginning of the year, some experts remain cautious, particularly regarding margin development in the fourth quarter. However, others, including analysts like Brent Thill from Jefferies, maintain a positive outlook on the company's long-term performance.

Positive Outlook Amid Recent Dip

While Amazon's stock experienced a slight 0.7% decline in a recent NASDAQ session, closing at $188.34, analysts continue to view the company favorably. The average price target of $221.43 suggests a significant upside potential of over 17% from current levels. This optimism is rooted in Amazon's strong quarterly results, which saw a 10.12% year-over-year revenue increase to $147.98 billion and a near doubling of earnings per share from $0.66 to $1.29. These figures underscore the company's ongoing growth momentum and fuel investor expectations for future gains.