What's Going On With Amazon Stock Monday?

Amazon.Com, Inc AMZN stock is trading higher Monday amid investors seeking updates on the company's cloud business and ad revenue growth ahead of its second-quarter earnings release date of July 3.

Investors try to gauge how the company's cloud provider Amazon Web Services (AWS), stacks up against Microsoft Corp MSFT and Alphabet Inc GOOG GOOGL Google, which both on Tuesday reported slowed growth in their cloud businesses in the quarter ending on June 30, Reuters reports.

Amazon previously shared expectations of a decrease in growth in AWS as business clients reallocated their spending to reduce costs.

D.A. Davidson's analyst Tom Forte sees potential for cloud computing, including Microsoft's Azure, Google Cloud, and AWS, to materially benefit from companies interested in artificial intelligence. However, he also flagged that companies invested in AI and cloud tools are reconsidering their expenses with consumers' overall pullback on spending, echoing Amazon's Brian Olsavsky during its first-quarter call.

Investors also seek how Amazon's advertising business crosses with more language models and generative AI.

Google reported a 3.3% growth in advertising revenue to $58.1 billion on Tuesday. Net sales of Amazon's advertising business in the first quarter were $9.51 billion. Investors expect the company's advertising segment will increase to $10.3 billion in the second quarter, according to estimates from Refinitiv.

Investors are looking for Amazon's strategy to drive its e-commerce business profitability for the rest of the year. Amazon's Prime Day sales, which took place July 11-12, will not be a part of Amazon's results for its second quarter.

Amazon's profit margin was 46.77% in the first quarter. Analysts expect its margins to reach 46.53%, according to Refinitiv.

Amazon also announced Monday that it looks to double the number of U.S. same-day delivery facilities in the "coming years" to maintain its lead in the $1.4 trillion online shopping market.

The company said more than half of all orders placed by Prime subscribers in the 60 largest metropolitan areas during the most recent quarter arrived the same or the next day, Bloomberg reports.

It has delivered over 1.8 billion units to Prime members in the U.S. with same-day or one-day delivery this year, up fourfold from the same period in 2019.

Price Action: AMZN shares traded higher by 0.30% at $132.60 on the last check Monday.

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