Amazon's Q1 Earnings Preview: Key Metrics and Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 29 2026
0mins
Should l Buy AMZN?
Source: Newsfilter
- Revenue Growth Expectations: Amazon is projected to achieve $177.3 billion in revenue for Q1, reflecting a 14% year-over-year increase, which marks a significant acceleration from last year's 8.6% growth, indicating strong market performance and growth potential.
- Cloud Business Focus: Analysts expect Amazon Web Services (AWS) to generate $36.92 billion in revenue for Q1, representing a 26% increase from the previous year, showcasing a robust rebound in cloud demand that could further solidify Amazon's leadership in the cloud market.
- Capital Expenditure Increase: Amazon anticipates capital expenditures will reach $200 billion by 2026, a substantial rise from last year, primarily driven by investments in artificial intelligence and satellite internet services, which will enhance the company's future growth and competitive edge.
- Layoffs and Investments: Despite announcing a layoff of 16,000 employees in Q1, Amazon's investments in OpenAI and Anthropic are expected to drive an increase in compute spending, indicating that the company is strategically optimizing resource allocation while actively positioning itself for future technological advancements.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMZN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 271.170
Low
175.00
Averages
280.01
High
325.00
Current: 271.170
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alibaba Launches AI Shopping Assistant Integration
- AI Platform Integration: Alibaba is set to integrate its AI platform Qwen with the online marketplace Taobao, enabling consumers to shop through conversations rather than keyword searches, which is expected to enhance user experience and drive sales growth.
- Product Catalog Access: The Qwen app will access the entire catalog of over 4 billion products from Taobao and Tmall, and manage logistics and after-sales services through a 'skills library', significantly improving shopping efficiency and customer satisfaction.
- Smart Recommendation Features: The new system will provide personalized shopping recommendations based on users' order history and shopping preferences, aiming to enhance user engagement and increase conversion rates, thereby boosting overall sales performance.
- Virtual Try-Ons and Price Tracking: Inside Taobao, a Qwen-powered AI shopping assistant will be launched, featuring virtual try-ons and 30-day price tracking capabilities, further bridging the gap between Chinese and Western e-commerce platforms in AI application and enhancing competitiveness.
See More
Buffett's New Investment: New York Times
- Investment Moves: Buffett's new position in the New York Times, valued at $351 million, indicates a strategic shift from tech stocks to traditional sectors, potentially altering the overall risk profile of his investment portfolio.
- Digital Subscription Growth: The New York Times added 450,000 digital subscribers in the last quarter, bringing the total to approximately 12.8 million, demonstrating significant progress in its digital transformation and potential for future revenue enhancement.
- Advertising Revenue Surprises: Digital advertising revenue surged to 25%, exceeding expectations of high teens, indicating strengthened competitiveness in the advertising market, which may support future profitability.
- Valuation Concerns: Despite generating $550 million in free cash flow, the New York Times' market cap is nearly $12 billion, resulting in a free cash flow yield of only 4.6%, raising concerns about its valuation and potentially limiting further stock price appreciation.
See More
Bezos' Move to Florida Saves Nearly $1 Billion in Taxes
- Relocation Background: Jeff Bezos shared a nostalgic Instagram video reflecting on his makeshift Amazon office in 1994, announcing his move from Seattle to Florida to be closer to his parents in Miami.
- Tax Savings: Forbes reported that Bezos saved nearly $1 billion in 2024 due to Florida's favorable tax policies, illustrating the appeal of low-tax states for the wealthy.
- Capital Gains Tax Advantage: After relocating, Bezos sold approximately $13.6 billion worth of Amazon shares, avoiding $952 million in capital gains taxes due to Florida's lack of such taxes, highlighting the significant impact of location on investment returns.
- Insight for High Earners: Bezos' situation demonstrates that low-tax states can greatly enhance wealth accumulation for affluent individuals, encouraging other high earners to consider similar relocation strategies.
See More
Target Launches Baby Boutiques to Attract Family Customers
- Baby Boutique Rollout: Target has launched baby boutiques in approximately 200 stores, allowing customers to experience high-end brands like UPPAbaby firsthand, aiming to attract busy family customers and enhance market share.
- Market Share Challenges: Despite holding a 17.6% share in the baby products market, Target has seen a decline compared to Walmart's 27% and Amazon's 24.4%, indicating increased competitive pressure.
- Sales Growth Expectations: Target anticipates a year-over-year net sales increase of about 2% this year, with growth expected in every quarter, signaling efforts to reverse the sales slump experienced over the past four quarters.
- Strategic Investment Plan: Target plans to invest approximately $5 billion in capital expenditures this fiscal year to improve store experiences and product quality, aiming to enhance customer loyalty and address competitive challenges.
See More
Alphabet Surpasses Nvidia in Market Cap Amid AI Boom
- Market Cap Milestone: Alphabet briefly surpassed Nvidia in after-hours trading with a market cap of $4.8 trillion, reflecting strong performance in the AI sector, particularly after a 160% stock price increase over the past year, which has significantly boosted market confidence in its future prospects.
- Cloud Business Surge: Google Cloud's backlog nearly doubled to $462 billion, with analysts attributing this growth primarily to a $200 billion deal with Anthropic, indicating Google's competitive edge and profitability in AI infrastructure.
- Investment Concerns: Despite strong cloud performance, analysts express concerns over reliance on Anthropic, which could account for over 40% of future contracted revenue, reminiscent of Oracle's situation, potentially impacting investor confidence.
- Capital Expenditure Plans: Google projects capital expenditures of up to $190 billion for 2025, more than double that of 2024, with analysts noting that this spending will be crucial for sustained competition in AI, but it also introduces risks that need to be addressed at the upcoming Google I/O conference.
See More
Alphabet Briefly Surpasses Nvidia in Market Cap Amid AI Optimism
- Market Cap Shift: Alphabet briefly surpassed Nvidia in after-hours trading, reaching a market cap of $4.8 trillion, reflecting strong market confidence in its AI capabilities, particularly in cloud computing and proprietary models.
- Cloud Growth Surge: Alphabet's cloud backlog nearly doubled to $462 billion, indicating robust growth potential in AI-related businesses, with analysts suggesting this will provide a solid foundation for future revenue increases.
- Investor Confidence: JPMorgan named Alphabet as their “top overall pick” in the tech sector, highlighting its leading position in the AI market and profitability, signaling optimistic expectations for its future performance.
- Risk Warning: Despite the market's optimism, analysts express concerns over Anthropic's $200 billion cloud commitment, which could represent over 40% of Alphabet's future contracted revenue, cautioning investors about potential concentration risks.
See More
Alibaba Launches AI Shopping Assistant Integration
- AI Platform Integration: Alibaba is set to integrate its AI platform Qwen with the online marketplace Taobao, enabling consumers to shop through conversations rather than keyword searches, which is expected to enhance user experience and drive sales growth.
- Product Catalog Access: The Qwen app will access the entire catalog of over 4 billion products from Taobao and Tmall, and manage logistics and after-sales services through a 'skills library', significantly improving shopping efficiency and customer satisfaction.
- Smart Recommendation Features: The new system will provide personalized shopping recommendations based on users' order history and shopping preferences, aiming to enhance user engagement and increase conversion rates, thereby boosting overall sales performance.
- Virtual Try-Ons and Price Tracking: Inside Taobao, a Qwen-powered AI shopping assistant will be launched, featuring virtual try-ons and 30-day price tracking capabilities, further bridging the gap between Chinese and Western e-commerce platforms in AI application and enhancing competitiveness.
See More
Buffett's New Investment: New York Times
- Investment Moves: Buffett's new position in the New York Times, valued at $351 million, indicates a strategic shift from tech stocks to traditional sectors, potentially altering the overall risk profile of his investment portfolio.
- Digital Subscription Growth: The New York Times added 450,000 digital subscribers in the last quarter, bringing the total to approximately 12.8 million, demonstrating significant progress in its digital transformation and potential for future revenue enhancement.
- Advertising Revenue Surprises: Digital advertising revenue surged to 25%, exceeding expectations of high teens, indicating strengthened competitiveness in the advertising market, which may support future profitability.
- Valuation Concerns: Despite generating $550 million in free cash flow, the New York Times' market cap is nearly $12 billion, resulting in a free cash flow yield of only 4.6%, raising concerns about its valuation and potentially limiting further stock price appreciation.
See More
Bezos' Move to Florida Saves Nearly $1 Billion in Taxes
- Relocation Background: Jeff Bezos shared a nostalgic Instagram video reflecting on his makeshift Amazon office in 1994, announcing his move from Seattle to Florida to be closer to his parents in Miami.
- Tax Savings: Forbes reported that Bezos saved nearly $1 billion in 2024 due to Florida's favorable tax policies, illustrating the appeal of low-tax states for the wealthy.
- Capital Gains Tax Advantage: After relocating, Bezos sold approximately $13.6 billion worth of Amazon shares, avoiding $952 million in capital gains taxes due to Florida's lack of such taxes, highlighting the significant impact of location on investment returns.
- Insight for High Earners: Bezos' situation demonstrates that low-tax states can greatly enhance wealth accumulation for affluent individuals, encouraging other high earners to consider similar relocation strategies.
See More
Target Launches Baby Boutiques to Attract Family Customers
- Baby Boutique Rollout: Target has launched baby boutiques in approximately 200 stores, allowing customers to experience high-end brands like UPPAbaby firsthand, aiming to attract busy family customers and enhance market share.
- Market Share Challenges: Despite holding a 17.6% share in the baby products market, Target has seen a decline compared to Walmart's 27% and Amazon's 24.4%, indicating increased competitive pressure.
- Sales Growth Expectations: Target anticipates a year-over-year net sales increase of about 2% this year, with growth expected in every quarter, signaling efforts to reverse the sales slump experienced over the past four quarters.
- Strategic Investment Plan: Target plans to invest approximately $5 billion in capital expenditures this fiscal year to improve store experiences and product quality, aiming to enhance customer loyalty and address competitive challenges.
See More
Alphabet Surpasses Nvidia in Market Cap Amid AI Boom
- Market Cap Milestone: Alphabet briefly surpassed Nvidia in after-hours trading with a market cap of $4.8 trillion, reflecting strong performance in the AI sector, particularly after a 160% stock price increase over the past year, which has significantly boosted market confidence in its future prospects.
- Cloud Business Surge: Google Cloud's backlog nearly doubled to $462 billion, with analysts attributing this growth primarily to a $200 billion deal with Anthropic, indicating Google's competitive edge and profitability in AI infrastructure.
- Investment Concerns: Despite strong cloud performance, analysts express concerns over reliance on Anthropic, which could account for over 40% of future contracted revenue, reminiscent of Oracle's situation, potentially impacting investor confidence.
- Capital Expenditure Plans: Google projects capital expenditures of up to $190 billion for 2025, more than double that of 2024, with analysts noting that this spending will be crucial for sustained competition in AI, but it also introduces risks that need to be addressed at the upcoming Google I/O conference.
See More
Alphabet Briefly Surpasses Nvidia in Market Cap Amid AI Optimism
- Market Cap Shift: Alphabet briefly surpassed Nvidia in after-hours trading, reaching a market cap of $4.8 trillion, reflecting strong market confidence in its AI capabilities, particularly in cloud computing and proprietary models.
- Cloud Growth Surge: Alphabet's cloud backlog nearly doubled to $462 billion, indicating robust growth potential in AI-related businesses, with analysts suggesting this will provide a solid foundation for future revenue increases.
- Investor Confidence: JPMorgan named Alphabet as their “top overall pick” in the tech sector, highlighting its leading position in the AI market and profitability, signaling optimistic expectations for its future performance.
- Risk Warning: Despite the market's optimism, analysts express concerns over Anthropic's $200 billion cloud commitment, which could represent over 40% of Alphabet's future contracted revenue, cautioning investors about potential concentration risks.
See More
