Truist reiterated its Buy rating on Amazon, expressing confidence ahead of its third-quarter earnings report. Amazon has scheduled its results conference call for Thursday, October 29.

The firm expects results toward the upper end of expectations, supported by sustained growth at Amazon Web Services and faster-than-industry growth in the North American marketplace.

That gives investors two operating trends to examine.

First is AWS, Amazon’s cloud computing business. Businesses rely on cloud services to run applications, store information and support computing workloads. For Amazon shareholders, the question is whether customer spending can produce attractive growth while supporting profitability. 

Second is the retail business. Growing faster than the broader industry would suggest Amazon is capturing a larger share of customer spending. However, sales growth becomes more valuable when the company can fulfill those orders efficiently.

Sincerely, 

Ian Cooper

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