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Amazon (AMZN) is set to announce its first-quarter earnings after the market closes on Thursday. Analysts remain optimistic about the tech and retail giant’s performance.

Strong Buy Ratings from Analysts

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All 26 analysts tracked by Visible Alpha recommend buying Amazon stock. Every analyst has set a price target above the current stock price. The average target is around 241, which is 29% higher than Tuesday’s closing price. However, this target has dropped from 259 before last quarter’s report.

Expected Financial Performance

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Amazon is projected to report 155 billion in revenue for Q1, an 8% increase compared to the same period last year. Adjusted earnings per share are expected to rise to 1.75, up from $1.46 a year ago.

Despite these positive expectations, Amazon’s stock has fallen about 15% since the beginning of the year. This decline is partly due to broader market sell-offs, particularly affecting tech giants like Amazon.

Concerns Over China Tariffs

Analysts will be looking for updates on Amazon’s AI investments and spending plans. However, another key focus is the potential impact of U.S. tariffs on Chinese goods.

Earlier this month, Raymond James downgraded Amazon’s stock, citing concerns that tariffs could squeeze profit margins. They also warned that advertising revenue from third-party sellers—many of whom rely on Chinese imports—might decline.

Morgan Stanley estimates that 18% of Amazon’s products come from China. Additionally, about 60% of third-party sellers have some exposure to China, which could influence their advertising budgets.

UPDATE—April 29, 2025: This article has been updated with the latest analyst estimates and stock price data.

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