Amazon stock has been a laggard among its Magnificent Seven peers, but Wall Street is bullish that the latest results will show AI-driven strength.

Amazon reports Q4 earnings Thursday, capping a tech earnings season dominated by a single question: whether the industry's AI spending binge will ultimately be worth it.

By Dawn Chmielewski and Greg Bensinger LOS ANGELES, Feb 4 (Reuters) - Amazon plans to use artificial intelligence to speed up the process for making movies and TV shows even as Hollywood fears that AI will cut jobs and permanently reshape the industry.

Amazon MGM Studios will reportedly begin a closed beta program in March to test its AI tools to help with film and TV production.

Analysts expect a record-breaking Q4 2025, with revenue projected to hit approximately $211.3B and EPS at $1.97, driving Amazon to surpass $700 billion in annual revenue for the first time.

Amazon stock is under-performing the S&P 500 heading into a crucial Q4 earnings report

For the quarter, Amazon is expected to report earnings per share (EPS) of $1.96 on revenue of $211.5 billion, up from $1.86 and $187.8 billion in the same period last year. That represents a 5% jump in EPS and a roughly 13% increase in revenue.

While Amazon doesn't explicitly state what that means, the New York Times reports that the company intends to shift resources to artificial intelligence and the data centers that AI requires. As mentioned in their report, Amazon spent around $125 billion last year on data centers and related expenditures.

Amazon MGM Studio is developing AI tools to streamline movie and TV production, led by Albert Cheng, with industry partners testing the technology soon.

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Analysts Are Watching. On February 2, Evercore ISI analyst Mark Mahaney reiterated an Outperform rating on the stock with a $335.00 price target.