By Aaron McDade

Amazon’s stock is roughly flat for the year after pulling back from its May highs. Peter Dazeley / Getty Images

Amazon is set to report earnings after the closing bell Thursday, with traders expecting a big move from the e-commerce giant’s stock.

Amazon (AMZN) shares are seen swinging up to 6% in either direction by the end of the week, based on recent options pricing. A move of that size from the stock’s recent level around $231 could see the shares climb close to $246, recovering some of their recent losses, or slip below $217.

Heading into Thursday’s report, Amazon shares are roughly flat for the year and 17% off their May highs in the wake of Amazon’s first-quarter report. The stock has taken a hit amid a broader pullback in the AI trade in recent weeks as investor worry about big tech companies’ massive spending on AI infrastructure.

Bank of America analysts recently wrote that they expect a “modest” bump in Amazon’s retail sales from its Prime Day sales event, though investors may be more focused on its Amazon Web Services. Wedbush analysts said they see “continued heavy investment” in Amazon’s AI chipmaking efforts and satellite internet network.

Amazon is projected to report $196.75 billion in revenue for the second quarter, up about 17% year-over-year, with a more than 30% jump in AWS revenue to $40.49 billion. Analysts see Amazon reporting earnings of $1.99, up from $1.68 the same time last year, per Visible Alpha estimates.

READ: How Amazon Makes Money

Wall Street analysts are largely bullish on Amazon stock, with 18 of the 19 analysts tracked by Visible Alpha recommending buying the stock, while just one holds a neutral rating. Their mean target of $312 would suggest 35% upside from Tuesday afternoon’s level.

Source: Investopedia