PREVIEW: Amazon shares sink; Q4 EPS, rev seen rising

Shares in Amazon.com AMZN.O drop nearly 4% on Thur, on track for a third straight days of losses ahead of its quarterly report due after market close, as investors focus on co's heavy spending on AI

AMZN's drop was part of a broad AI selloff after Alphabet GOOGL.O on Wed said it could as much as double its capex in 2026 as it builds AI datacenters

While investors focus heavily on Amazon's cloud computing business, which represents 18% of its revenue, and its ecommerce business, analysts are also focused on physical store revenue, which includes Whole Foods, with expectations for an increase of 5.4% y/y as the company deepens its competition with rivals such as Walmart WMT.N

Wall Street analysts on average see the ecommerce and web services giant reporting Q4 adj EPS of $1.97 vs $1.86 yr-ago with revenue rising more than 12% to $211.33 bln, per LSEG

In last 8 quarters, AMZN handily beat EPS consensus every time while revenue met or beat expectations 7 times

AMZN last traded around $224.19 vs median PT of $300 according to LSEG, which shows 71 analyst ratings: 19 'strong buy,' 48 'buy,' and 4 'hold' ratings

YTD the stock has fallen ~3% vs a ~2% gain for the Dow Industrials .DJI and a drop of ~1.8% for the S&P 500 consumer discretionary index .SPLRCD