Amazon's Q3 2024 earnings per share (EPS) estimates have been boosted by Wedbush, reflecting the company's strong performance despite a tepid market. The latest earnings report for Q2 2024 highlighted a 10.5% revenue increase to $148.56 billion, driven by growth in advertising and cloud services. Amazon Web Services (AWS) reported a 19% revenue rise to $26.3 billion, surpassing market estimates. The company's cost-cutting measures, initiated by CEO Andy Jassy, have significantly improved profitability, with operating income surging by 200% in the first quarter and expected continued growth in Q2.

Amazon's stock has risen by 23% this year, with the Nasdaq index seeing a gain of just over 17%. The company's advertising division is a key driver of growth, with revenue projected to increase by 22% in Q2. Amazon's strategic moves, such as incorporating ads into Prime Video content and securing a role in the NBA's television agreement, are expected to bolster its advertising revenue and Prime Video platform.

Analysts anticipate a strong rebound for Amazon's stock once the AI bubble bursts, leveraging its strengths in AI and cloud services. AWS is poised to benefit from increased AI spending, with projections indicating a 22% year-over-year growth in 2024. Amazon's AI capabilities, including Trainium and Inferentia, are expected to tap into the $1.16 trillion market potential. Despite some underperformance, Amazon remains a dominant player in cloud services, retail, and advertising, with substantial growth potential.

Amazon's most recent stock price is $2,345.59 per share, reflecting its resilience and potential for future growth. The company's strategic investments and cost-cutting measures have positioned it well for long-term success, making it a prime candidate for investors seeking stable and profitable investments.