Amazon delivery truck
Image courtesy of Shutterstock

Amazon Earnings Preview: 6.8% Stock Price Move Expected

By:Mike Butler

  • Amazon is set to report earnings on Oct. 26 at 3 p.m. CDT.
  • The tech giant has had massive earnings growth this year, beating EPS estimates by 44% and 89% in the last two quarters, respectively.
  • Quarterly earnings are expected to come in at an EPS of $0.60 on $141.56 billion in revenue.
  • The focal points for this quarter will be e-commerce sales growth, and ad sales.

Amazon (AMZN) is set to report quarterly earnings this week on Thursday, Oct. 26 with an expectation that revenue will increase and earnings per share (EPS) will decrease.

Last quarter, the company was expected to report EPS of $0.34 on $131.34 billion in revenue, and it reported a staggering EPS of $0.65 on $134.38 billion in revenue. After almost doubling the EPS figure that was expected, the market is now expecting a similar EPS print this time around.


Amazon stock has had a strong 2023 so far, opening the year at $85.46, and currently sitting at $123.40—up almost 45% on the year so far. The household-name tech stock reached a 2023 stock price high of $145.86 on Sept. 14. Amazon Web Services (AWS) is the largest public cloud service out there, and Amazon will look to lean on AWS growth this quarter.

Alphabet (GOOGL)—Google's parent company—just reported earnings and one of its misses was in the cloud revenue department—could this mean that AWS is taking more of the lion's share? We'll find out on Thursday after the close.

Amazon's ad sales are right up there with Alphabet and Meta (META), so it will be interesting to see how it fared this quarter. One of Amazon's fastest-growing business sectors. Alphabet beat ad-sales estimates by almost $1 billion this quarter and Amazon will look to report similar success.

One of the major focal points for Amazon's quarterly earnings announcement will be how it has adjusted and reduced costs in this inflationary environment—with cash flows slowing as consumers pinch pennies and prepare for some potential economic turbulence.

The stock's expected move for this week based on current implied volatility is +-$8.63. which is about 6.8% of the current stock price. This week's expected move is about half of the expected move through the January 2024 options cycle, so the market is placing a pretty heavy weight on this earnings announcement.

Bullish on Amazon earnings

Amazon income

Amazon has had a pretty amazing turnaround when it comes to net income, as shown in the tastytrade research tab above. Just a few quarters ago it posted a net loss of $2 billion. And in the last quarter, it posted a net income of $6.8 billion. Compound that with a competitor posting a strong ad sales report just a few days prior to Amazon's earnings announcement, and it may seem logical that the retailer could post another EPS and/or revenue beat. If that's the case, and the market likes what it sees, we may see Amazon stock rally.

Bearish on Amazon earnings

Amazon's sharp growth spurt has resulted in an EPS estimate that is almost double what it was last quarter. This means that. if the e-commerce giant doesn't continue these strong numbers, it could easily miss EPS and/or revenue expectations and the stock could fall.

More earnings pressure can sometimes mean a mediocre report could cause a stock price to drop. We saw with Alphabet after its earnings announcement, where it beat EPS and revenue estimates pretty easily, but the stock still dropped almost 5% the next day.

Tune in to Options Trading Concepts Live on Thursday, Oct. 26 at 11 a.m. CST for a full options strategy breakdown ahead of Amazon earnings.

Mike Butler, tastylive director of market intelligence, has been in the markets and trading for a decade. He appears on Options Trading Concepts Live, airing Monday-Friday. @tradermikeyb

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.

Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.