Should You Buy Amazon Stock Before July 31?
Investment
The Motley Fool

Should You Buy Amazon Stock Before July 31?

July 28, 2025
09:48 AM
4 min read
AI Enhanced
financialtechnologye-commercemarket cyclesseasonal analysismarket

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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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investment

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Published

July 28, 2025

09:48 AM

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The Motley Fool

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Key Topics
financialtechnologye-commercemarket cyclesseasonal analysismarket

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.