Amazon rises 0.4% as investors digest a major Verizon AI contract and upcoming earnings

What happened

Amazon (AMZN) rose 0.4% on October 26, 2026, as investors absorbed news the company had won a more than $2 billion AI contract with Verizon and prepared for an upcoming earnings report. The move amounted to an ordinary session for the stock under computed guidance. The shares opened 0.6% above the previous close and finished at $249.09 while trading 0.9 times their 20-day average; the S&P 500 rose 0.7% on the day.

How big was the move

The price change was modest, equal to 0.2 times a typical daily move for the stock. Over the last five sessions the shares fell 5.1%, while the S&P 500 over the same period fell 0.2%. Against its sector, the stock was 0.5 percentage points better than the Consumer Cyclical sector median, which was unchanged.

The technical picture

The stock was 2.2% below its 20-day moving average and 2.5% below its 50-day moving average, while it remained 2.4% above its 200-day moving average. The 50-day average sat above the 200-day average, a sign of an established uptrend, and the stock has spent 62 consecutive trading days above the 200-day average. Its Relative Strength Index (14 days) was 44, in a neutral range between 30 and 70, and the shares were 13.3% below their 52-week high.

Over one month the stock fell 0.2%, over three months it rose 7.9%, and over one year it rose 12.7%, which left it 1.3 percentage points behind the S&P 500 for that period. Volatility was 29% annualized over 60 days, a level lower than 72% of the stock’s own readings over the past five years. Together these measures suggest the recent pullback has not been accompanied by a spike in volatility.

Fundamentals and valuation

For the four quarters through June 30, 2026, Amazon reported revenue of $775.68 billion, up 15.8% from a year earlier. Diluted earnings per share for that period were $12.43, and earnings per share growth from a year earlier rose 89.5%. Gross margin widened to 50.8% from 49.6% a year earlier, and operating margin rose to 12.1% from 11.4%.

Free-cash-flow margin stood at 1.5% and return on invested capital was 8.5%. On the balance sheet, net debt was 0.6 times EBITDA and the company’s share count over one year increased by 0.9%. PromtFinance scores ranked Amazon 50 for Value (Neutral), 87 for Growth (Strong) and 74 for Quality (Positive), with Momentum 66 (Positive), Revisions 89 (Strong) and Stability 76 (Positive).

Valuation metrics showed the stock at 20.0 times trailing earnings and 19.4 times expected forward earnings. The price to trailing earnings reading was the lowest reading of the past five years, against a five-year median of 49.3 times earnings, and free-cash-flow yield was 0.4%. Those figures point to a crowding of value in the headline price-earnings measure even as cash return remains modest.

Earnings and analyst expectations

Amazon is scheduled to report next on October 29, 2026. The company’s last report, on July 30, 2026, delivered earnings per share of $5.75 against $1.82 expected, 215.9% above estimates, and marked two consecutive quarters beating estimates. The average surprise over the last four reports was 77.4% above estimates, while typical two-day reactions after recent reports was unchanged.

Ninety-four analysts cover the stock, with a consensus rating of Buy and 88% of ratings at Buy or Strong Buy. The consensus price target was $328.90, 32.0% above the closing price on October 26, 2026.

What to watch

• October 29, 2026: Amazon reports next quarterly results
• Verizon signed an AI contract with Amazon worth more than $2 billion, reported by WSJ
• July 30, 2026: Last report showed earnings per share of $5.75 against $1.82 expected, 215.9% above estimates
• Consensus price target $328.90, 32.0% above the closing price
• Price to trailing earnings 20.0 times, the lowest reading of the past five years