Should you Buy Amazon Stock Before October 29? History Has a Clear Answer.
Key PointsIt is unclear how a recent sell-off in AI-related stocks may affect Amazon.
Amazon (AMZN) is set to release its Q3 2026 earnings on October 29, and history suggests investors may want to consider buying the stock beforehand. Amazon has experienced a strong performance after each Q3 earnings report in recent years, with the stock rising the following day. While there are concerns about the company's high capital expenditures (capex) of $220 billion, Amazon's diverse business model, including its e-commerce and AI-driven cloud arm, Amazon Web Services (AWS), offers stability.
AWS revenue grew by 37% annually, outpacing its 21% share of Q2 revenue. Despite a pre-tax gain of $53.4 billion from its Anthropic investment, Amazon's trailing P/E ratio has fallen to 20, which is still relatively low compared to its historical average of over 50 times earnings. While the future of AI stocks remains uncertain, past patterns indicate that Amazon stock may be a prudent buy ahead of the earnings report.
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