Alibaba's Stock Declines, Yet Recovery Is Possible with Upcoming Earnings Report.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy AMZN?
Source: Barron's
Earnings Report Anticipation: Alibaba Group Holding is preparing to announce its fiscal third-quarter earnings, which has generated interest among investors.
Investment Potential: The upcoming earnings report may present opportunities for making profits in Alibaba's stock, suggesting a favorable outlook for investors.
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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: 207.240
Low
175.00
Averages
280.01
High
325.00
Current: 207.240
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.
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See More
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- E-Commerce Profit Potential: Amazon's North American retail division achieved a 6.9% profit margin last year, indicating strong profitability in its e-commerce business, with expectations of easily reaching 10% and potentially 15% in the coming years.
- Advertising Growth: The growth in higher-margin segments like advertising is expanding Amazon's overall profit pool, and while investments in new projects may compress margins in the short term, they are expected to create long-term value.
- Low Stock Valuation: Amazon's current P/E ratio of 28.5 is among its lowest historically, reflecting the market's underestimation of its future profit potential, especially as retail could reach $750 billion in revenue in the next few years.
- Importance of Cost Control: Amazon must maintain cost discipline over the next decade to ensure steady growth in its international market revenue of $162 billion, which will drive overall profitability improvements.
See More
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- Revenue Growth Potential: Amazon Web Services (AWS) achieved a 24% revenue growth last quarter and is expected to accelerate in the coming year, with management projecting revenue growth from $129 billion to $600 billion by 2036, indicating strong market demand and long-term profitability.
- Retail Division Performance: Amazon's retail segment grew revenue by 10% year-over-year in North America, with a profit margin of 6.9% over the past 12 months, showcasing ample room for continued expansion, particularly driven by advertising, third-party seller services, and subscriptions.
- Operating Margin Improvement: Amazon's consolidated operating margin reached a record high of 11.8%, and if it can expand to 15% while revenue grows to $1 trillion, it is projected to generate $150 billion in operating earnings in the coming years, enhancing its investment appeal.
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See More
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- Decline in Female Directors: Only 11 women directed films in the IMDbPro Top 100 for 2025, marking a 45% drop from 2023, indicating a troubling regression in gender balance that may further limit opportunities for women in the industry.
- Reduction in Gender-Balanced Films: The number of films awarded the ReFrame Stamp for gender balance fell to 26 in 2025, a 13% decrease from the previous year, highlighting a decline in gender diversity in key roles that could hinder industry growth.
- Decrease in Female Lead Roles: The number of female lead characters dropped to 39 in 2025, a 23.5% decline from 2024, with no transgender or nonbinary individuals represented as directors or leads, reflecting ongoing shortcomings in industry diversity.
- Increase in Female Writers and Producers: Despite the overall decline in gender balance, 55 films credited women as producers, the highest since 2019, indicating progress in certain areas that may lay the groundwork for future gender equity.
See More
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- Geopolitical Impact: The U.S.-Iran conflict has driven crude oil prices up, raising inflation expectations; however, Rubner notes that when the forward P/E falls below 20, future returns tend to be favorable, potentially providing opportunities for investors.
- Market Rebound Signs: Stocks surged on Monday after President Trump signaled progress toward ending the war, and although major indices fell on Tuesday, futures pointed to sharp gains on Wednesday, suggesting a potential market turnaround.
- Investment Strategy Recommendations: Rubner highlighted several bullish options trades in technology stocks, particularly in Nvidia, Amazon, Alphabet, and Apple, leveraging the risk-limiting features of call options to help investors capitalize on opportunities in a volatile market.
See More
Amazon's AI Investment Outlook Remains Positive
- Price Target Increase: Citi Research raised Amazon's price target from $265 to $285, implying about a 27% upside from Tuesday's close, reflecting confidence in the company's future growth prospects.
- AWS Revenue Projections: Analysts expect Amazon Web Services (AWS) revenue to grow 28% year-over-year in Q1 2026 and accelerate to 37% growth in 2027, primarily driven by partnerships with OpenAI and Anthropic.
- Compute Capacity Expansion: AWS is on track to double its compute capacity by 2027, potentially reaching around 24 gigawatts, which will enhance its competitiveness in the rapidly growing AI market.
- Market Confidence Boost: Despite a 10% decline in Amazon's stock price since the beginning of the year, 65 out of 69 analysts maintain a buy or strong buy rating, indicating strong market recognition of its long-term investment value.
See More
Citi Raises Amazon Price Target to $285 on AI Revenue Boost
- Price Target Increase: Citi raised Amazon's (AMZN) price target from $265 to $285, reflecting increased confidence in Amazon Web Services' (AWS) revenue projections driven by AI, indicating strong market sentiment towards Amazon's growth prospects.
- AWS Revenue Growth Forecast: Analysts project AWS revenue growth of 28% year-over-year in Q1 2026, 29% for 2026, and accelerating to 37% in 2027, demonstrating that Amazon's partnerships in AI are significantly enhancing its revenue trajectory.
- Significant AI Revenue Contribution: AI revenue is expected to account for 58% of AWS's incremental revenue in 2026 and 72% in 2027, indicating Amazon's strengthening competitive position in the AI market despite concerns over ROI and cash flow visibility.
- Partnership Potential: Analysts noted that partnerships with Anthropic and OpenAI could contribute approximately $18 billion and $31 billion to AWS revenue in 2026 and 2027, respectively, highlighting Amazon's strategic positioning in AI infrastructure and future growth opportunities.
See More
