Amazon is set to release its Q4 earnings report, with investors keenly watching capital expenditures and the company's approach to AI. Following mixed reactions to recent earnings from Meta and Microsoft, Amazon's spending plans and revenue projections will be under intense scrutiny. The company's stock performance is lagging behind some competitors, adding to the pressure.

Analysts predict earnings per share of $1.96 on $211.5 billion in revenue, reflecting a 5% EPS jump and a 13% revenue increase. The AWS segment is forecasted to reach $34.9 billion, a 21% increase year-over-year. Online store sales are expected to hit $82.3 billion, and advertising revenue is projected at $21.2 billion, highlighting Amazon's diverse revenue streams.

Wall Street will be particularly focused on Amazon's capex. The company spent $34.2 billion in Q3 and is expected to spend $34.9 billion in Q4. CFO Brian Olsavsky indicated that spending will continue to rise in 2026 to meet AI demand. Excessive spending could negatively impact the stock price, as seen with other tech giants.

Amazon's strategic moves, including job cuts and store closures, signal efforts to streamline operations. The company's ability to balance investments in AI with profitability will be critical. Investors will be watching how Amazon navigates the competitive tech arena, and how it impacts the stock price.