Amazon Q4 Earnings Preview: What To Watch When AMZN Reports on February 5

The December quarter earnings season for the “Magnificent 7” has been tepid at best until now. Tesla (TSLA) closed in the red following its Q4 report, while Apple (AAPL) was flat following the confessional. Microsoft (MSFT), meanwhile, saw a nearly double-digit dip and had its worst year since 2020. Meta Platforms (META), however, stood out and soared after better-than-expected Q4 earnings and upbeat Q1 guidance.

All eyes are now on the remaining constituents, with Alphabet (GOOG) (GOOGL) set to report after the bell today, Feb. 4, followed by Amazon’s (AMZN) earnings tomorrow. The e-commerce giant, which was the worst-performing of the lot last year, is up barely 1% for the year. While the returns are not boast-worthy, they are good enough to make AMZN the third-best Mag 7 this year, trailing only Alphabet, which has resumed its rally from last year, and Meta, which soared after its Q4 earnings. Let's look at Amazon’s Q4 earnings estimates and analyze whether the stock is a buy or a sell ahead of the report.