Global e-commerce giant Amazon.com Inc. (AMZN – Free Report) is set to report fourth-quarter 2024 earnings results on Feb. 6, 2025, after the closing bell. The stock currently carries a Zacks Rank #2 (Buy) and has an Earnings ESP of +4.78%. Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better (Rank #1 or 2) and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
 Factors to ConsiderAmazon is gaining on solid Prime momentum owing to ultrafast delivery services and a strong content portfolio. Strengthening relationship with third-party sellers is a positive. The growing adoption of the AWS services portfolio is aiding AMZN’s cloud dominance. A robust advertising business is also contributing well. Amazon’s strong global presence remains a key growth driver. Deepening focus on generative AI is a major plus. AMZN’s AWS is the largest cloud service provider beating Microsoft Corp.’s (MSFT – Free Report) Azure and Alphabet Inc.’s (GOOGL – Free Report) cloud services. AMZN reported record business in the 2024-25 holiday season in terms of both sales and items sold.Also, the improving AI-powered Alexa business, along with robust smart home product offerings, is acting as a tailwind. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are the other positives. We expect 2024 net sales to increase 10.7% from 2023.The chart below shows the price performance of AMZN compared with other “Magnificent 7” stocks in the past month.Image Source: Zacks Investment Research
 Robust Earnings Estimate Revisions for AMZN StockFor fourth-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $187.28 billion, suggesting an improvement of 10.2% year over year and earnings per share (EPS) of $1.52, indicating an increase of 50.5% year over year. The Zacks Consensus Estimate for fourth-quarter 2024 earnings has improved 1.3% over the last 30 days. AMZN reported positive earnings surprises in the last four reported quarters with an average beat of 25.9%.At present, the Zacks Consensus Estimate indicates a year-over-year increase of 10.9% and 79.3%, respectively, for revenues and EPS in 2024. The Zacks Consensus Estimate for 2024 earnings has improved 0.2% over the last 30 days.Even after this upward revision, the current Zacks Consensus Estimate for 2025 revenues and EPS reflects an upside of 10.8% and 20.1%, respectively. The Zacks Consensus Estimate for 2025 earnings has improved 0.3% over the last 30 days. AMZN currently has a long-term (3-5 years) EPS growth rate of 28.2%, well above the S&P 500’s long-term EPS growth rate of 12.4%.Image Source: Zacks Investment Research
 Solid Short-Term Price Upside Potential for AMZN SharesAMZN has a return on equity of 22.41% compared with -4.62% of the industry and 16.88% of the S&P 500 Index. The short-term average price target of brokerage firms for the stock represents an increase of 6.1% from the last closing price of $236.17. The brokerage target price is currently in the range of $212-$306. This indicates a maximum upside of 29.5% and a maximum downside of 10.2%.Image Source: Zacks Investment ResearchMore By This Author:Buy The Pullback In Alphabet Stock After Q4 Earnings? Qualcomm Q1 Earnings And Revenues Surpass Estimates Walt Disney Beats Q1 Earnings And Revenue Estimates