Amazon Declines More Than Market Amidst Earnings Expectations

Amazon (AMZN) shares closed at $219.36, down 1.84% from the prior day. Despite this decline, the stock has seen a 2.99% increase over the last month, surpassing the Retail-Wholesale sector's gain of 1.87%. Investors will be watching Amazon's upcoming earnings release, with an EPS of $1.32 and revenue of $161.99 billion forecast. The Zacks Rank assesses the strength of industry groups by calculating the average Zacks Rank of individual stocks. Amazon currently has a Zacks Rank of #3 (Hold) and a Forward P/E ratio of 35.93.

Amazon (AMZN) shares closed at $219.36 on July 2, 2025, down 1.84% from the prior day. Despite this recent decline, the stock has seen a 2.99% increase over the last month, outperforming the Retail-Wholesale sector's gain of 1.87% [1]. Investors are closely watching Amazon's upcoming earnings release, with an EPS of $1.32 and revenue of $161.99 billion forecasted for the quarter ending June 30, 2025 [2].

Amazon has a strong history of beating earnings estimates. For the last two quarters, the company's average surprise was 20.07%, with the most recent quarter showing a surprise of 17.78% [1]. This consistent performance has led to increased analyst optimism, with a positive Earnings ESP of +1.48% at the moment [1]. The Zacks Rank for Amazon is #3 (Hold), indicating a stable position within its industry group [1].

Amazon's Zacks Rank is calculated based on the average Zacks Rank of individual stocks within the same industry group. This ranking system helps investors assess the strength of industry groups. The Forward P/E ratio for Amazon is 35.93, reflecting the market's expectations for the company's earnings growth [1].

Investors should also consider the broader market context. Over the past year, Amazon's stock has gained 12.07%, and the company continues to expand its cloud computing and AI capabilities [2]. The stock's performance has been influenced by various factors, including the impact of the COVID-19 pandemic, tariff threats, and the broader economic climate. However, Amazon's strong fundamentals and continued growth in key segments like AWS and Amazon Ads have provided a solid foundation for the stock's performance.

Looking ahead, Amazon's upcoming earnings release will be closely watched by investors. The company's ability to continue its streak of beating earnings estimates will be crucial for maintaining investor confidence. Additionally, analysts expect Amazon to report stronger-than-expected Q2 results, driven by a resilient North American consumer and favorable FX conditions [2].

In conclusion, while Amazon's shares have seen a recent decline, the stock's strong performance over the last month and the anticipation of a positive earnings surprise suggest that investors remain optimistic about the company's prospects. The upcoming earnings release will provide further clarity on Amazon's financial health and future growth potential.

References:
[1] https://finance.yahoo.com/news/amazon-amzn-beat-estimates-again-161001605.html
[2] https://247wallst.com/investing/2025/07/07/amazon-stock-price-prediction-where-will-it-be-in-1-year/