Earnings season is about to begin and it’s a time when companies share how their businesses have been performing. Few reports attract as much attention as Amazon’s. With operations in global e-commerce, cloud computing, digital advertising, and streaming, Amazon’s earnings often provide clues of economic trends around the world.
Amazon’s movements get noticed by everyone from Wall Street to Main Street. The release of the Q3 2025 report, which is imminent, is of special importance as it shows the latest important data before the holiday buying cycle.
For experienced traders, including those who like using Eurotrader, such patterns present a huge opportunity. Traders are already lining up their strategies and sharpening their plans in preparation for the price movement that inevitably follows the release of the report.
The AWS
The place to begin, as always, is with the “crown jewel”: Amazon Web Services (AWS), the high-margin business that has been the profit engine of the company for years. The money from AWS has funded everything from the low-margin retail business to the company’s speculative endeavors like Alexa, to the company’s scheme to revolutionize logistics. But it appears that AWS growth slowed in 2023-2024 as companies that AWS supplies optimized their expenses by stretching their contracts and slashing expenses. The burning question that derivatives traders want to see answered in the Q3 earnings release relates to whether that’s finally ended.
Also, the bet for many traders is now on an incredible new innovation: the Generative AI Boom. All companies, whether it’s a startup or an international business giant, must now create and apply artificial intelligence algorithms. This needs an unimaginable amount of processing power that AWS is ready to capitalize on. To learn more, check out Mayfair London.
The E-Commerce Engine
Although AWS may be a lucrative business area, it’s the massive e-commerce business that keeps Amazon at the forefront. The company’s e-commerce business in North America and International operations acts as a clear proxy to the consumer. The story of 2025 so far has, however, been that of a “squeezed” consumer due to higher levels of inflation and increased interest rates. The challenge in the forthcoming Q3 earnings report will be that of testing whether the summer sales and the annual “Prime Day” were successful in luring the reluctant consumer or whether an evident slow down has been seen in online buying.
- Inflation and higher borrowing costs continue to weigh on spending.
- Amazon’s online sales trends often show adjustments in global consumer demand.
- Q3 results will show if events like Prime Day managed to help with increasing momentum.
Ads and Subscriptions
One of the most important and least appreciated aspects of the Amazon has been its additional sources of revenue, chiefly its internet advertising business. Amazon has quietly become the third-largest online ad company, behind only Google and Meta. The competitive advantage here is significant: Amazon’s ad sales come from placing ads at the moment of purchase, targeting customers based on actual buying behaviour rather than just browsing data.
The traders are eagerly awaiting the continuation of the growth of this business as it increases high profit margin contributions for the company. The new addition of an advertising-supported service for Prime Video offers another revenue channel. The positive performances of these high-margin businesses offer an imperative hedge for the company as it assures investors that Amazon’s diversified profit capabilities are not limited to AWS.
The Big One: Holiday Q4
This is undoubtedly the most important aspect of the overall earnings announcement. The stock market is future-driven. Ironically, just the release of Q3 data will make it old news quickly. The first and most significant reaction from the stock market will likely center on Amazon’s plans for Q4 2025.
This marks the holiday season that stands as the busiest and most vital period for a retailer. The revenue range that Amazon sees for Q4 2025 will reflect Amazon’s value greatly. In that case, it’s almost certain that Amazon stocks will increase in the stock market.
| Metric to Watch | Why It Matters for Traders |
| Total Revenue | Shows overall business health. A big rise or fall will influence the stock price. |
| AWS Revenue Growth (YoY) | Anything below 16% would be a major disappointment. Anything above 17% would signal growth and be bullish. |
| E-Commerce Operating Margin | Shows if cost-cutting and regionalization efforts are successfully boosting profitability in the core retail business. |
| Advertising Revenue Growth | Continued strong growth here is important to the overall profit and diversification. |
How CFDs Handle the Hype
For the long-term investor, an earnings announcement may be a data point within a longer-term process. For the short-term trader, it may very well one of the most important aspects for them. The Amazon stock could swing 5%, 8%, or more than 10% within minutes of an earnings report in the after-hours market. That’s the kind of high-stakes fluctuation that invites specialized traders. This is the kind of high-stakes volatility that attracts specialized traders, similar to those who might use a regulated forex broker to trade on economic news.
“Contract for Difference” is another name for CFD. CFD offers a convenient way to profit from stock earnings by letting the investor bet on the stock’s price change without having to physically purchase $AMZN stock.
FAQ
How can traders prepare for Amazon’s Q3 2025 earnings report?
Traders should monitor AWS revenue growth and total revenue trends as these can cause short-term price volatility. It’s also important to set stop-loss and take-profit levels before the report drops since Amazon’s earnings releases often trigger price swings.
