Amazon outlook: bull and bear cases ahead of October earnings

Amazon.com Inc (AMZN) is currently trading at $250.83 as of October 2, 2026. Short-term momentum is mixed, while the weekly chart maintains a defensive outlook. The upcoming earnings release on October 29, 2026, is the key catalyst for Amazon's stock price. Analysts anticipate earnings per share (EPS) of $1.96 and revenue of $202.10 billion, with AWS and advertising segments driving the growth.

For the stock to exhibit bullish potential, it must surpass the $253–$257 range, supported by increasing volume and a rising Moving Average Convergence Divergence (MACD). Currently, the weekly momentum is negative, with the Relative Strength Index (RSI) near 50.66 and the price trading below the 5-, 10-, and 20-week averages. Despite this, the stock could experience a bounce without confirming the end of the broader pullback.

The potential downside risks include a break below the 200-day Simple Moving Average (SMA) at approximately $241.36, which would weaken the near-term structure. If this occurs, the stock may test the $230s range, although no specific target is specified in the available data. At present, the market sentiment is slightly cautious, not outright bearish.

The bull case hinges on AWS and advertising growth outpacing concerns regarding investment intensity and valuation. Conversely, the bear case gains strength if the stock falls below $241.36. The central debate revolves around whether AWS and advertising growth can exceed market expectations, and the article encourages further reading for a comprehensive understanding of the situation.