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3 things to watch from Amazon earnings: Munster

After big drops from Apple and Microsoft following earnings reports earlier this week, the focus now shifts to Amazon, which is due to report second-quarter results on Thursday after the bell. Piper Jaffray Managing Director Gene Munster says there are three key topics to look out for in Amazon's report.

The Nasdaq composite index pulled back from its all-time highs this week on the heels of 4 percent drops for Apple and Microsoft on Wednesday. Those companies reported headline earnings and revenue that topped analyst estimates, though certain elements of each company's quarter left investors wanting.

For Amazon to buck this week's trend of discontent tech investors, the company will have to hit three targets, Munster said.

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Amazon was trading at around $487 on Thursday. Munster, who has an "overweight" rating and a $520 price target on the stock, told CNBC that profitability remains critical. The analyst said he was looking for operating margins of 1.6 percent or better.

Next, Munster said he was targeting unit growth of 18 percent or better for the quarter.

Finally, Munster said he'd be looking for margin guidance for the September quarter of 1 percent or better.

Regarding September guidance, Munster wrote in an earnings preview note that Amazon's Prime Day promotion could help boost unit growth estimates for the next quarter. "According to our proprietary unit count estimate, we would add 2 (points) of growth" to Amazon's September quarter, he said.

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Shares of Amazon are up more than 57 percent this year, and the stock is currently trading near record levels. "Despite the recent move higher, we would be owners of Amazon," Munster wrote.