Zacks Investment Ideas feature highlights: Amazon

For Immediate Release

Chicago, IL – August 11, 2026 – Today, Zacks Investment Ideas feature highlights Amazon AMZN.

Amazon: A Post-Earnings Drift Candidate

The Benefit of Trading Stocks Post-Earnings

While many amateur investors play 'earnings roulette,' savvy investors understand that waiting until after an earnings report can often be more powerful. Below are three reasons why:

·       You avoid binary event risk: Corporate earnings are notoriously hard to predict. Additionally, even if earnings were highly predictable, the reaction to these earnings isn't. By waiting until after earnings, investors can eliminate binary, 'coin flip risk.'

·       Forward guidance clarity: Investors can get a clear view of earnings and forward guidance before risking their hard-earned capital.

·       Post-earnings drift: When a company reports a bullish earnings report, price tends to continue to drift higher after the initial burst as institutional investors jockey to get positioned.

Amazon: A Post-Earnings Drift Set Up

Until its earnings report last week, Zacks Rank #1 (Strong Buy) stock Amazon had been stagnant for more than a year. However, on Friday, July 31st AMZN shares jumped more than 15% as volume jumped 150% above the 50-day average. The massive price gap and subsequent tight consolidation is a hallmark sign of a pos-EPS drift set up. The price spike shows accumulation while the bull flag shows that investors with a profit are unwilling to part with shares.

AWS Reaccelerates

Investors applauded Amazon's earnings report mainly due to Amazon Web Services results. AWS revenue jumped 37% year-over-year to $42.2 billion, beating Wall Street expectations of $40.54 billion. This marked the fasted quarterly growth for the cloud unit in 18 quarters. The AWS news is especially bullish because it is Amazon's most profitable business segment.

Massive AI Backlog

Although Amazon's capital expenditure (CAPEX) spending guidance soared to $220 billion, it backed by a massive backlog. CEO Andy Jassy revealed that AWS has a backlog of nearly $500 million and the company will be unable to meet soaring customer demand through 2028.

Renewed Growth and Reasonable Valuation

Zacks Consensus Estimates suggest that Amazon will grow its EPS by a robust 82.15% in 2026.

Meanwhile, AMZN has a PEG ratio of ~2x, making it the cheapest it has been in years.

Bottom Line

Amazon's recent earnings breakout is likely just beginning as AWS experiences renewed growth and AI demand soars.

Free: Instant Access to Zacks' Market-Crushing Strategies

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. 

Get all the details here >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research