One of Amazon’s (NASDAQ:AMZN) biggest bulls just lowered his 12-month price target on AMZN stock, hours before the company is due to release its third-quarter earnings report.

Should investors be worried? In a word: No.

There’s a 99.9% chance Amazon will deliver strong results. It’s the future quarters that ought to worry investors. We’ll know more after the e-commerce giant reports its results on Thursday after the market closes.

Minimum Wage And Higher Shipping Costs

At the end of September, Jeffries analyst Brent Thill suggested that AMZN stock could hit $3,000 by 2020, raising the market cap of Amazon stock to $1.5 trillion.

“We believe the stock remains undervalued given all embedded growth opportunities and the optionality from new initiatives,” Thill wrote in a Sept. 25 note. “We think Amazon trades at a material discount to peers on a growth-adjusted basis and expect multiples to expand over time.”

Thill believes that all of Amazon’s businesses other than e-commerce are growing faster and are a lot more profitable than the core e-commerce business. As a result, he thinks that Amazon stock is well-positioned to continue to appreciate.

“AWS, advertising, and subscription are all growing ~2 times faster than the core and are more profitable,” Thill wrote in the same note. “We estimate conservatively these businesses will be on a combined $115B+ run rate by 2021, just over a quarter of total revenue, but close to half of Amazon’s value.”

The analyst is on record as saying that the company’s $15 minimum wage won’t have a material impact on the bottom line or on Amazon stock. That said, he estimates the move will cost AMZN $1.5 billion a year and dilute its earnings per share by 8% in 2019.

When he made all of those comments, his 12-month price target on Amazon stock was $2,350. Since then, Thill changed his tune slightly, lowering his target by $90 to $2,260, to account for the added costs of the minimum wage and higher Post Office shipping rates.

Investors will want to pay closer attention to Amazon’s statements regarding this quarter’s results and about the future to confirm that Amazon’s growth train isn’t going off the tracks.

The Raw Numbers

Analysts’ Q3 consensus earnings per share estimate for AMZN is $3.08, considerably higher than the 52 cents it earned in the same quarter a year earlier when it had only owned Whole Foods for a month or so.

That’s the FactSet consensus. The Estimize estimate is very bullish at $3.78 while the Earnings Whisper number is $3.44, smack dab in the middle.

FactSet expects Amazon to generate $57.11 billion in revenue, representing a 31% year-over-year increase. AMZN has beaten revenue estimates in five out of the last six quarters.

The Bottom Line on AMZN Stock

InvestorPlace contributor Bret Kenwell believes that Amazon’s third-quarter report is going to be a good one and I would tend to agree.

“When Amazon reports its fiscal third-quarter earnings results later this month, it will include the company’s results from Prime Day,” Kenwell wrote in a column published on Oct. 4. “Those results should be monstrous and help give Amazon an even greater boost to revenue. It essentially created a Black Friday shopping event in the middle of summer. Brilliant.”

While Amazon’s strategy for its main business has been brilliant, its other businesses (as Thill suggests) are benefiting from the company’s success in e-commerce.

I’m excited to learn more about the progress that Amazon’s advertising business is making because it has a lot of untapped potential. The ad business may even have more potential than AWS, its cloud business.

I believe Amazon stock could reach $3,000 by 2020. Of course, I suggested earlier this year that it would get to $10,000 by January 2025.

What can I say? I’m a fan of AMZN.

If there is a correction of AMZN stock after Thursday’s earnings, I’d seriously consider buying some Amazon stock, leaving a little cash in reserve in case the markets continue to correct.

Over the long-term, Amazon stock will be a winner.

As of this writing Will Ashworth did not hold a position in any of the aforementioned securities.