Bank of America analysts project Amazon’s fourth quarter revenue at $213 billion, surpassing the Wall Street consensus of $211 billion, and expect operating income of $26 billion versus the Street’s $24.6 billion forecast. These estimates reflect a stable level of online spending during the holiday period, with November and December sales up approximately 14% year-over-year. The firm cites continued strength in free-shipping driven Prime subscriptions, which now exceed 180 million members globally, as a key contributor to revenue resilience.

Amazon Web Services grew revenue by 20% in the third quarter, outpacing the 17% expansion seen in the first half of the year, and holds a 29% share of the global cloud infrastructure market. AWS ended the quarter with an order backlog of roughly $200 billion in long-term contracts, driven by demand for AI training and inference services on its Trainium and Inferentia chips. Investors will focus on AWS margins, which stood near 34% in Q3, to assess Amazon’s ability to absorb heavy capital spending while maintaining profitability as it competes with Microsoft Azure and Google Cloud Platform.

Amazon announced the closure of all Amazon Go and Amazon Fresh brick-and-mortars, including about 15 cashierless convenience outlets and 60 Fresh supermarkets. The company plans to convert select locations into Whole Foods Market stores, which have delivered over 40% same-store sales growth since 2017 and now total 550 outlets. Amazon will instead allocate resources to expand same-day grocery delivery in more than 5,000 U.S. cities and open over 100 new Whole Foods supermarkets and smaller Daily Shop formats over the next several years.

During the 2025 holiday season, Amazon’s North America e-commerce division reported double-digit growth, with unit orders up 12% year-over-year, fueled by strong uptake in digital electronics and home goods. Meanwhile, Amazon Advertising generated $17.7 billion in Q3 revenue, rising 24% year-over-year, as brands increased spending on sponsored listings and video ads. Management highlighted that advertising margins exceed 50%, positioning this segment as the fastest-growing margin contributor alongside AWS and reinforcing analysts’ bullish outlook for multiple expansion.