Amazon earnings live updates: Stock declines, consumer strength in focus

JPMorgan says cloud computing will be a key area of ​​strength.

JPMorgan cited Amazon Web Services, the company's cloud computing system, as a key reason for continued optimism about the stock.

AWS will continue to accelerate through 2025, supported by optimizations, new workload migrations, and Amazon's increasing monetization of artificial intelligence. The bank expects AWS to have grown 21% year over year, exceeding Wall Street expectations.

JPMorgan expects third-quarter net sales of $157 billion, below consensus estimates of $157.3 billion.

Retail profits likely came under pressure last quarter as spending, including Prime Day discounts, came under pressure. According to the bank, consumers have become cautious about discretionary items while also saying they prefer bargains. Taken together, these factors have depressed Amazon's average selling prices.

JPMorgan has an “Overweight” rating on Amazon and a $230 price target. This suggests an upside of almost 23% from current levels.