This article first appeared on GuruFocus.

Amazon.com (NASDAQ:AMZN) has rebounded in recent weeks, but the stock still faces a key test as the e-commerce and cloud giant heads into its Feb. 3 earnings report.

Shares have recovered from a late-November pullback near $217 and recently traded around the mid-$230s, reflecting renewed confidence in Amazon Web Services and its long-term AI opportunity.

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At the same time, investors remain cautious. Amazon’s trailing 12-month free cash flow declined in the third quarter as heavy spending on AI infrastructure weighed on near-term margins. While analysts largely view those investments as necessary to sustain AWS growth, the timing of payback remains uncertain.

Wall Street sentiment has improved modestly, with average price targets moving back toward the high-$280s to low-$300s range. That implies upside if Amazon delivers solid guidance and evidence that cash flow pressures are easing.

So, is Amazon stock a buy ahead of earnings? The answer likely hinges on management’s outlook. A strong AWS update and improving cash flow could justify buying before the report, while cautious guidance may argue for patience until after results.

Based on the one year price targets offered by 72 analysts, the average target price for Amazon.com Inc is $292.65 with a high estimate of $360.00 and a low estimate of $227.10. The average target implies a upside of +26.52% from the current price of $231.31.

Based on GuruFocus estimates, the estimated GF Value for Amazon.com Inc in one year is $236.70, suggesting a upside of +2.33% from the current price of $231.31. gf value is gurufocus’ estimate of the fair value that the stock should be traded at. it is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. For deeper insights, visit the forecast page.