Amazon (NASDAQ: AMZN) is set to report its second-quarter earnings on Thursday, July 30, and expectations are high, especially for the AWS cloud services business.
For example, analysts at Bank of America recently raised their AWS growth forecast to 33% year-over-year, specifically calling out demand from Anthropic and OpenAI workloads
This would be a significant acceleration from the 28% growth rate the commerce and tech giant reported in the first quarter and would likely be taken as a positive sign by investors. But I’m going to make the bold prediction that even these lofty expectations aren’t enough — in fact, I predict that AWS revenue growth could come in at 35% or more. Amazon’s second-quarter earnings: What the market expects As mentioned, Amazon reports earnings on Thursday (after the market’s close), and analysts expect about $197 billion in total revenue and $1.82 in earnings per share, which would be 8% higher than a year ago.
When it comes to AWS, expectations vary depending on who you ask, but virtually all analysts expect to see acceleration compared to the first quarter. Most reputable analyst forecasts expect AWS revenue growth in the 31%-33% range. So, why am I predicting an even better number?