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Amazon.com Inc. (NASDAQ:AMZN) shares are falling Thursday, hours before its third-quarter earnings report, as one market watcher warns that AI shopping assistants could threaten its retail business. Here’s what you should know.

• Amazon.com shares are retreating from recent levels. What’s weighing on AMZN shares?

Amazon Stock Falls Ahead of Earnings

Amazon shares are sliding Thursday, a few hours before the company reports third-quarter results, and one market watcher says a long-term risk is part of the reason. Gene Munster wrote on X that Google’s results were “a warning sign to Amazon investors.” Amazon is down about 3.5% heading into the report, Munster noted, while the Nasdaq is down 1.5%.

Munster’s case centers on AI. Personalized bots that find products for shoppers become a serious threat from the back half of 2027, in Muster’s view, because they could turn into the natural first stop for anything people buy. That makes good September results and in-line December guidance less likely to help the stock tonight, Munster expects.

Amazon’s edge rests on three things, Munster said: helping shoppers find what they want, speed and trust. The first, Muster argues, faces growing pressure from the bots.

What to Expect From Amazon’s Third-Quarter Earnings

Wall Street projects earnings of $1.96 per share on revenue of about $202.3 billion. Last year, Amazon posted $1.95 per share and $180.17 billion in sales for the same quarter. It has topped revenue estimates eight quarters in a row and earnings estimates two in a row. Over the past 10 quarters, it has beaten both measures nine times.

Amazon Web Services, its cloud unit, draws the most attention. Its revenue climbed 37% to $42.2 billion last quarter, its quickest pace in 18 quarters. Amazon’s two retail segments, North America and International, grew 16% and 15%. Investors will also look at Amazon’s AI and chips businesses, which the company has said each ran at a pace above $25 billion a year.

The retail side faces its own test heading into the holidays. Amazon’s comments could hint at how shoppers will spend this season, with fuel costs high and the economy still uncertain.

AMZN Shares Are Sliding

AMZN Price Action: Amazon.com shares were down 3.34% at $246.10 at the time of publication on Thursday, according to Benzinga Pro.

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