Amazon’s AI-Driven Earnings Report Faces Scrutiny Amid Slowing Growth

Amazon (AMZN) prepares to release its fourth-quarter earnings with Wall Street's attention laser-focused on its aggressive AI investments. The tech giant's shares have surged 34% over five years, but recent months show deceleration—raising questions about whether AI expenditures will fuel future growth or strain margins.

Analysts project $1.96 EPS on $211.5 billion revenue, marking 5% and 13% year-over-year increases respectively. AWS remains the crown jewel with anticipated 21% growth to $34.9 billion, while advertising revenue could hit $21.2 billion as the segment gains prominence.

Capital expenditures loom as a critical metric after Q3's $34.2 billion outlay. The market watches whether Amazon's AI bets will replicate past triumphs or echo the dot-com era's excesses—a tension reflected in the 8.9% projected growth for online store sales, now dwarfed by cloud and ad segments.