Amazon (AMZN) shares are in focus ahead of the tech behemoth’s second-quarter earnings, which are scheduled to be released after market close on July 30. Consensus is for the company to post $1.81 a share of earnings (EPS), up 7.74% year-on-year, on $195.97 billion in revenue, a 16.8% increase from the same quarter last year.
www.barchart.comWhere Options Data Suggests Amazon Stock Is Headed
While AMZN shares’ year-to-date performance has been rather muted, options pricing signals they will rally after the upcoming earnings release.
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According to Barchart, the put-to-call ratio on contracts expiring July 31 sits at 0.44x currently, which indicates a strong bullish skew.
And the upper price on those derivative contracts is set at a little over $246 at writing, implying potential for a more than 6% rally within days after the quarterly print.
On the flip side, however, Amazon is trading decisively below its major moving averages (MAs), with an RSI in the late 30s reinforcing intense selling pressure heading into the Q2 release.
What to Look for in Amazon’s Earnings
Note that Amazon shares are currently trading at a forward price-to-earnings (P/S) ratio of about 31x, which makes them much more expensive to own than its cloud rivals like Microsoft (MSFT) and Alphabet's (GOOG) (GOOGL) Google.
That said, the titan’s results, especially the growth in its Amazon Web Services (AWS) unit, will set its stock’s trajectory for the second half of 2026.
Investors will be watching closely for signs that accelerating artificial intelligence (AI) demand is translating into stronger cloud revenue and expanding margins.
Robust AWS growth will help validate Amazon’s aggressive AI infrastructure investments, easing concerns that heavy capital expenditures are pressuring near-term profitability without generating adequate returns.
Such an outcome would reinforce confidence in management’s long-term AI strategy and support further upside in AMZN.
How Wall Street Recommends Playing AMZN Shares
Wall Street remains uber bullish on AMZN stock heading into the firm’s Q2 earnings.
The consensus rating on Amazon sits at “Strong Buy” currently, with the mean price target of $315 indicating potential for a sharp rally over the next 12 months.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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