Tech giants Meta Platforms (META) and Amazon (AMZN) are all set to report their Q3 earnings this week. Notably, five-star-rated analyst Doug Anmuth at J.P. Morgan is positive about their earnings reports. Meanwhile, their derivatives strategist, Bram Kaplan, has also suggested trading strategies that could help investors benefit if both stocks move higher.
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Meta will release its Q3 earnings on Wednesday, October 29, while Amazon will announce on Thursday, October 30. Ahead of the Q3 report, both stocks carry Strong Buy ratings from analysts.
Kaplan Sees Modest Upside Ahead for Amazon and Meta
Kaplan expects Amazon and Meta to rise after earnings, but not shoot up too high. So he suggests a strategy that limits cost and risk by buying one call option and selling another at a higher price.
Notably, this strategy is called a call spread. It lets investors profit if the stock goes up moderately. If the price rises too much above the higher strike price, gains are capped, but the trade is cheaper than buying a call outright. This strategy keeps the bet affordable and avoids overpaying in case the rally is small.
Bullish Bet on Amazon
For Amazon, Kaplan suggests, buying a $235 call option and simultaneously selling a $245 call option, both set to expire this Friday. AMZN stock closed at $226.97 on Monday.
At the same time, using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The tool shows that traders expect AMZN stock to move roughly 6.5% either up or down following its Q3 2025 earnings release.
On Wall Street, analysts expect Amazon to report earnings per share (EPS) of $1.57 for Q3 2025, reflecting 9.7% year-over-year growth. Meanwhile, revenue is projected to increase 12% to $177.85 billion compared with Q3 2024.
Bullish Bet on Meta
For Meta, Kaplan recommended buying a call option at $780 and selling another at $805, also expiring this Friday. META stock closed at $750.82 on Monday.
According to TipRanks’ Options tool, traders expect META stock to move roughly 6.72% either up or down following its Q3 2025 earnings release.
On Wall Street, analysts expect Meta’s Q3 earnings per share to jump 11.4% year over year to $6.72, up from $6.03 last year. Meanwhile, revenue is projected at $49.4 billion, marking over 21% year-over-year growth.
META or AMZN: Which Tech Stock Offers Higher Upside, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared META and AMZN to see which tech stock analysts favor. Both stocks carry a Strong Buy consensus from analysts. Notably, Amazon has a stock price target of $269.24, suggesting an upside of 18.62%. Likewise, Meta’s stock price target is $878.09, which implies an upside of almost 17% from the current level.
