Shares of Amazon can be unlocked by the letter "A" and these other two criteria, according to Evercore ISI.

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Evercore ISI analysts highlight three variables that could unlock potential in Amazon (NASDAQ:AMZN) before its earnings on Thursday, including the "A-word."

First, retail margins will recover when Amazon compares to the 2022 cost surges. Amazon's retail business will benefit from capacity use and regionalization. Q2 should show this development.

Retail sales recover the second part. Retail sales indicate this revival. 

The firm's "Shipping Elasticity" analysis reveals that faster shipping leads to faster shopping, further supporting the rebound. 

The Q2 report may support this hypothesis.AWS revenue acceleration is the third factor. Analysts call this "A-word". CFO Brian Olsavsky will be watched for the "A-word."

The firm and market expect 9%-11% year-over-year AWS sales growth in Q2. They expect July's growth to match Q2.

 Management must indicate whether the optimization cycle, AI workloads, and easing comparisons will accelerate AWS revenue growth starting in Q3.

 If it happens, it would be a major company milestone.

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