Should You Buy Amazon Stock Before July 31?
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You might be surprised to learn that Amazon (AMZN 0. 62%) stock is trailing the S&P 500 this year. Despite the market rebounding on good news tariffs, the market is...
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July 28, 2025
09:48 AM
The Motley Fool
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You might be surprised to learn that Amazon (AMZN 0. 62%) stock is trailing the S&P 500 this year
Despite the market rebounding on good news tariffs, the market is still worried Amazon's high exposure
Meanwhile, In the company's last earnings, management gave a fair defense of its and why it wasn't as exposed as some investors might think (which is quite significant)
Amazon stock climbed after that report, but it's still not back to its previous highs
Conversely, Amazon reports second-quarter earnings on July 31
Let's see what could happen and whether or not it makes sense to buy the stock before the report, given the current landscape
On the other hand, High expectations Amazon is the second-largest company in the U (quite telling), in light of current trends
By sales, and it's the fourth-largest company in the world by market cap
Moreover, It has 40% of the U
Market for e-commerce and 30% of the global market for cloud services
The data indicates that 's a formidable company, and there are many built-in expectations to keep it that way
This analysis suggests that 's a large and complex with many moving parts, and it makes steady gress in its various segments with every quarter
Additionally, In e-commerce, it recently started restructuring its inbound channels to get ducts to its vast domestic distribution centers faster and cheaper, and to make sure they're well stocked with the ducts shoppers purchase most frequently, in today's financial world
Nevertheless, It's also using more robotics, which can be quicker and less expensive than relying on workers, and it's expanding its dery station count in rural communities
CEO Andy Jassy calmed holders' concerns tariffs on Chinese goods, saying the company has millions of ducts with many suppliers, which tects it to some degree, and that as a trusted name, shoppers will keep purchasing from it when there's uncertainty (noteworthy indeed), in today's financial world
What everyone is most interested in, though, is artificial intelligence (AI)
Amazon has a competitive AI through Amazon Web Services (AWS), its cloud segment
The AI is a multibillion-dollar, but management sees it as being in its early innings
Market analysis shows 's more than $100 million in AI this year alone to vide the largest and most capable AI platform. "We're not dabbling here," Jassy said. "We're very intentionally giving builders the broadest possible capabilities at every level of the AI stack cost-effectively to use AI expansively across their es
Nevertheless, " Management gave a broad range of outcomes for the second quarter, considering the dynamic environment (an important development), in today's market environment
Sales are expected to increase 7% to 11%, or come in between $159 billion and $164 billion, considering recent developments
Wall Street is expecting $162 billion, given the current landscape
Furthermore, This analysis suggests that 's also guiding for operating income of $13 billion and $17, in this volatile climate. 5 billion, up or down from $14. 7 billion last year
What could happen on July 31 Amazon stock has mostly jumped after earnings in recent times
It tends to beat guidance, and it usually has some exciting news for holders and ers, in this volatile climate
However, However, there's no guarantee, and it plunged after the 2024 fourth quarter report, when tariffs were first being discussed
Since the tariff situation seems to be temporarily resolved, and the market isn't giving it that much weight right now, the lihood is that Amazon stock will jump this time around
Moreover, However, there's no way to know with certainty beforehand, in today's market environment
Although it might appear to be a good idea to buy before earnings if they're expected to be positive, if you're a long-term investor, these kinds of timing decisions tend not to matter in the long run
Additionally, Amazon stock could jump on Thursday and you'll feel really good your decision to buy beforehand, but if there's a sudden announcement next week new tariffs, the stock could drop to an even lower price than it was before the report
You can't time the market, and it's not usually worthwhile to try
If you see Amazon's long-term opportunity and have confidence in its management, and you appreciate today's compelling valuation, you should buy it as soon as possible.
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