Amazon shares are up around 8% Thursday afternoon, with just a few hours left until the release of its fourth quarter earnings.
That’s significantly higher than the rest of the market, and a big boost for Amazon’s stock that saw roughly 10% of its value drop this month.
It’s not exactly clear what’s driving the surge, but it’s probably a reflection of how excited investors are over Amazon’s upcoming earnings, which some analysts predict will be a huge beat.
In fact, Tuna Amobi of S&P Capital IQ recently told CNBC that Amazon could report its strongest holiday season sales in history.
“I’m expecting to hear very strong result. By all accounts, we think Q4 was Amazon’s best holiday season ever on any number of metrics,” Amobi said.
Amazon did indicate it had a strong holiday season last month, when it announced that its Prime service had record number of units shipped, with more than 3 million new customers joining its Prime membership program, which includes two-day free shipping and access to tons of free video and music content.
Amazon never released exact figures for its Prime members, but CIRP recently estimated it to be 54 million members, up 35% from last year.
Other factors that investors will keep an eye on include the growth of AWS, its cloud computing service which is expected to report over $7 billion in annual revenue, and any hints on its plans to get in to the broader logistics business, such as flight delivery or ocean freights.
Amazon gave fourth quarter revenue guidance in the range of $33.50 billion to $36.75 billion, which is in-line with analyst estimates of $35.9 billion. The street expects an adjusted EPS of $1.56, nearly triple of last year’s adjusted EPS if $0.45.
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.