On Oct. 29, Amazon (NASDAQ: AMZN) will report 2026 third-quarter earnings, giving investors more insight into whether revenue growth from Amazon Web Services (AWS) is sufficient to allay concerns about capital expenditures, which are expected to reach up to $220 billion this year.
Ahead of Oct. 29, some may be pondering what short-term trades to make over the next few days. But for those looking to capture meaningful gains in the stock without taking on excessive risk, what matters more is how Amazon performs over the next few years than over the next few days.
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One quarter won’t make or break Amazon
As a $2.7 trillion company, Amazon doesn’t find it easy to move the needle on its revenue, profits, or stock price. That said, even as one of the most valuable companies in the world, it still has plenty of upside potential thanks to AWS and its role as the backbone of the infrastructure for artificial intelligence (AI).
Amazon essentially provides a one-stop shop for companies needing to train and run AI models, thanks not only to its cloud services but also to its custom AWS Trainium chips. It’s already showing how valuable that business segment is, with AWS revenue increasing by 37% in the previous quarter against Wall Street estimates of 31%. And looking ahead, that division could be even more valuable.
According to research from Statista, the global AI market is valued at $707.4 billion in 2026 but expected to climb to $1.96 trillion by 2032. That shows that, as much as AI technology has advanced over the past couple of years, the opportunity to increase sales from companies that need AWS can continue steadily.
Ultimately, Amazon could just as easily exceed expectations for its upcoming quarterly results as it could underwhelm. But for a long-term investor who puts time on their side, one earnings report won’t matter compared to the gains that could be made over the next several years if Amazon keeps executing as the backbone of AI infrastructure.
Should you buy stock in Amazon right now?
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