Amazon.com forecast third-quarter sales above market estimates on Thursday, July 31, but failed to live up to lofty expectations for its Amazon Web Services cloud computing unit after rivals handily beat expectations.
Amazon (AMZN) shares plunged after the company's quarterly results, as investors may have been hoping for stronger cloud growth. Some analysts, though, are raising their price targets.
Amazon boosted its annual target for artificial intelligence spending as it frantically builds out more data centers to meet demand for the technology. Revenue expansion in Amazon Web Services underwhelmed investors, who probed Amazon CEO Andy Jassy on why its cloud rivals are growing at faster rates.
Shares of tech giant Amazon.com Inc. NASDAQ: AMZN finished Thursday's session up nearly 2%, only to tumble more than 6% in after-hours trading following the company's Q2 earnings release. This sharp reversal underlines just how high expectations had gotten after the 40% rally from April's low.
I downgrade Amazon from 'strong buy' to 'hold' after a 40% rally, locking in gains and selling 75% of my position. While Amazon's Q2 results beat expectations, slowing AWS growth and alarming free cash flow trends raise red flags for future upside. Valuation metrics, including a high price-to-free-cash-flow and PEG ratio, suggest AMZN stock is no longer attractively priced versus peers.
Amazon delivered Q2 2025 revenue of $167.7 billion (+13% YoY) and EPS of $1.68 (+33% YoY), beating consensus on both top and bottom lines. AWS revenue grew 17.5% to $30.9 billion, but operating margin fell to 32.9% due to higher stock-based comp, FX, and heavy AI infrastructure investment. Amazon's long-term growth drivers - cloud, AI, automation, and digital ads - remain intact, supporting my continued 'Buy' rating despite near-term margin pressures.
Amazon delivered strong Q2 results, beating revenue and earnings estimates, with solid growth across all major business segments. Despite robust performance, AWS profit growth lagged and free cash flow declined due to heavy AI-related capital expenditures, raising some concerns. Amazon's forward guidance is solid, but macro risks like tariffs and recession could impact future results, especially given its consumer focus.
Amazon.com Inc (NASDAQ:AMZN) smashed Wall Street forecasts in its latest quarterly results, reporting a strong jump in both revenues and profits. But instead of cheering, investors headed for the exit after the company issued cautious guidance for the upcoming quarter, wiping a staggering $184 billion off the e-commerce giant's market value in after-hours trading.
The accelerating cloud growth at Microsoft and Google points to artificial-intelligence momentum that AWS doesn't show yet.
Amazon reported a 35% jump in quarterly profits Thursday as the e-commerce giant said major investments in artificial intelligence began paying off.
Amazon's second-quarter earnings beat expectations with $167.7 billion in net sales. Amazon's stock fell 7% after hours.
Amazon.com, Inc. (NASDAQ:AMZN ) Q2 2025 Earnings Conference Call July 31, 2025 5:00 PM ET Company Participants Andrew R. Jassy - President, CEO & Director Brian T.