Here’s how much traders expect Amazon stock to move after earnings

Amazon (AMZN) is scheduled to report third-quarter earnings after the closing bell on Thursday, and some traders are betting that the results could give the stock, which has lagged behind the Magnificent Seven so far this year, a big boost.

Amazon stock is expected to move about 6% in either direction by the end of the week, according to recent options pricing data. A move of that size, based on Monday’s closing price, would put Amazon shares at about $241, their highest price since early February, or $213.

Amazon stock has moved an average of 4.7% after the last four earnings reports. Shares fell more than 8% after the company in July reported cloud revenue growth, disappointing Wall Street after strong showings from rivals Microsoft ( MSFT ) and Alphabet ( GOOG ). The last time Amazon stock rose after an earnings report was this time last year, when the company beat sales and earnings estimates thanks to strong cloud and advertising growth.

Amazon is the worst-performing stock in the Magnificent Seven so far this year, as the company’s heavy exposure to tariffs weighs on the stock. The stock is up just 5% since the beginning of the year.

Cost cuts and focus on cloud spending

Amazon’s retail business is facing rising tariff costs and increasing pressure on consumers, while its cloud computing unit is making huge investments in data centers to meet demand for artificial intelligence workloads. As such, cost savings will be at the forefront of investors’ minds during Thursday’s earnings call with executives.

Amazon announced Tuesday that it will cut 14,000 jobs at the company, which is said to be part of a larger downsizing that could see the company cut up to 30,000 office jobs, roughly 10% of its white-collar workforce. According to another New York Times According to the report, some executives expect warehouse robots to prevent the company from hiring up to 600,000 workers in the coming years.

The focus will also be on cloud growth and capital expenditures. Amazon’s infrastructure investments totaled more than $31 billion in the second quarter, about 20% more than Wall Street expected. CFO Brian Olsavsky expects second-quarter spending to be “reasonably representative” of capital spending for the rest of the year.