The analyst discusses Amazon's recent quarterly financial results, reported on July 31, 2025. Net sales increased by 13% to $168 billion. Operating income increased to $19.2 billion, compared to $14.7 billion in the same quarter last year, representing a $4.5 billion increase. The key number to watch is the Amazon Web Services (AWS) segment, which increased by 17.5% to $31 billion in the most recent quarter. For the upcoming quarter, investors want to see at least 17.5% growth. Amazon forecasts spending over $105 billion on capital expenditures in 2025, mostly to support the AWS segment. Based on the analyst's calculation, the fair value for AMZN stock is $295, while the current market price is $221, leading the analyst to believe the stock is undervalued. The forward price-to-earnings ratio is at 32, which the speaker is considered about fair value for Amazon based on the market analysis. The big risk to look out for is the impact of tariffs. If interested in Amazon, buy before earnings as it is fine or you can split your purchase in two and buy half before and half after the earnings.