Amazon (AMZN, $1,761.33) misses Q3 earnings estimate; but beats revenue expectation
Amazon missed the Street expectations on its third quarter earnings. But top-line figure handily surpassed estimates.
The e-commerce behemoth reported earnings of $4.23 a share, which fell behind analysts’ estimate of $4.62 (based on analysts surveyed by Refinitiv).
However, revenue surged +24% year-over-year to $70 billion, beating analysts’ expectation of $68.8 billion (based on Refinitiv poll).
Amazon Web Services registered revenue of $9 billion in the quarter, compared to $9.1 billion expected by analysts surveyed by FactSet. The segment’s revenues surged +34.7% year over year.
North America revenues (60.9% of sales) climbed +24.1% year-over-year to $42.64 billion. International revenues (26.2% of sales) increased +18% year over year to $18.35 billion.
Tailwinds to Amazon's revenue growth came in the form of strong performance of the company's free one-day delivery service, and expansion of Prime Video content. Also, solid growth in Amazon Web Services (AWS) and smart home products offerings further bolstered the quarter’s top-line numbers.
The company has spent over $800 million in each of the last two quarters to bulk up its free one-day delivery program. It expects to spend $1.5 billion more on the initiative during the fourth quarter to expand its warehouse capabilities and product selection.
Amazon also emphasized on increased spending on its cloud business and on upping the ante on its advertising sales force.
However, the company’s accelerating transportation and fulfillment center costs, and increasing competition in retail and cloud computing spaces could be potential concerns with respect to the bottom-line.
For fourth-quarter 2019, Amazon projects net sales between $80 billion and $86.5 billion, while the Zacks Consensus Estimate is $86.88 billion.
Momentum Indicator for AMZN turns positive, indicating new upward trend
AMZN saw its Momentum Indicator move above the 0 level on June 26, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned positive. In of the 79 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for AMZN just turned positive on June 27, 2025. Looking at past instances where AMZN's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 282 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AMZN moved out of overbought territory on June 30, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMZN broke above its upper Bollinger Band on June 27, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.616) is normal, around the industry mean (4.292). P/E Ratio (35.731) is within average values for comparable stocks, (50.300). AMZN's Projected Growth (PEG Ratio) (2.832) is very high in comparison to the industry average of (1.426). Dividend Yield (0.000) settles around the average of (0.093) among similar stocks. P/S Ratio (3.627) is also within normal values, averaging (6.656).
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General Information
a provider of on-line retail shopping services
Industry InternetRetail
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