Zacks Investment Ideas feature highlights: Amazon.com, Alphabet and Tesla

Chicago, IL - October 30, 2025 - Today, Zacks Investment Ideas feature highlights Amazon.com AMZN, Alphabet GOOGL and Tesla TSLA. Amazon Earnings Preview: On the Verge of a Breakout? Amazon.com heads into its upcoming earnings report as the clear laggard among the Magnificent Seven. The stock is up just 5% year-to-date and has been essentially flat over the past three months, a period that's been broadly strong for large-cap tech. Over that stretch, Alphabet and Tesla have led the group, rallying 39% and 44%, respectively. Despite that underperformance, Amazon may be setting up for a rebound. The stock now trades at 33.3× forward earnings, one of the most attractive valuations in its history and a reasonable multiple given its diversified growth engines in e-commerce, cloud computing, and digital advertising. From a technical standpoint, shares have been consolidating tightly since August and could be forming a base for a potential breakout if this quarter's results exceed expectations. For the upcoming report on Thursday, analysts expect earnings of $1.57 per share, up 9.8% year-over-year, on revenue of $177.9 billion, an increase of 12% from the prior-year period. Importantly, earnings estimates have turned higher over the past week, lifting Amazon to a Zacks Rank #2 (Buy) and signaling improving sentiment heading into the results. Amazon Founder Bezos Bullish on AI While Jeff Bezos is no longer CEO, his recent comments show he remains deeply engaged in Amazon's strategic direction, especially regarding artificial intelligence. Generative AI is a clear growth driver for Amazon Web Services (AWS), the company's dominant cloud division, but Bezos has emphasized the broader opportunity to embed AI across operations. He's described the integration of AI as his top priority, envisioning its use to enhance logistics and drive significant productivity gains. Just this week, we saw that Amazon plans to lay off some 30,000 employees. Could this be the first sign of the company's increasing efficiency? This operational focus may prove pivotal as public markets begin to separate AI adopters from AI executors. Amazon, with its data scale and infrastructure, appears well positioned to emerge as one of the leaders in this next phase of AI-driven transformation. Earnings Revisions, Valuation, and Technical Setup Amazon's earnings momentum remains strong. The company has beaten analyst expectations in 11 consecutive quarters, with an average surprise of 23% over the past year. The Zacks Earnings ESP currently projects an additional 8.9% beat for this quarter, suggesting analysts may still be underestimating performance. Looking ahead, earnings are forecast to grow 22.2% annually over the next three to five years, the second-highest growth rate among the Magnificent Seven, with sales expected to continue expanding at a steady double-digit clip. Combined with margin expansion and a reasonable valuation, the setup remains favorable. Technically, the stock has been consolidating just below resistance since early summer. A strong earnings beat and upbeat guidance could be the catalyst that propels shares higher and confirms a breakout from this multi-month base. Can Amazon Stock Play Catch-Up? After a year of muted performance, Amazon now finds itself at an inflection point. The company has the earnings power, operational leverage, and AI-driven tailwinds to narrow the gap with faster-moving peers like Alphabet and Tesla, both of which have surged in recent months. If Thursday's results reaffirm improving margins and accelerating growth within AWS and its retail operations, Amazon could finally rejoin Alphabet and Tesla in leading the next leg of the Magnificent Seven rally. For investors, the stock's combination of reasonable valuation, rising estimates, and emerging technical strength makes this one of the most important quarters to watch for a potential breakout Why Haven't You Looked at Zacks' Top Stocks? 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 access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com 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/performance for information about the performance numbers displayed in this press release. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential - and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. 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 Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Investment Ideas feature highlights: Amazon.com, Alphabet and Tesla

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