Andy Jassy řekl, že AWS by se „v čase“ mohlo stát byznysem s ročními tržbami 1 bilion dolarů. Amazon zároveň letos zvýšil kapitálové výdaje na zhruba 220 miliard dolarů kvůli AI infrastruktuře.
Amazon's (AMZN +1.69%) second-quarter earnings had investors on edge, fixated above all else on the company's capital expenditure (capex) outlook. This figure came in at roughly $220 billion for the full year, a meaningful increase from the previously stated $200 billion. According to management, higher memory costs are driving the surge.
The question hanging over Amazon's financials is whether such heavy spending can still be justified. During the earnings call, Amazon CEO Andy Jassy made some comments that offer a pointed answer.
Amazon CEO Andy Jassy. Image source: Amazon.com.
How are capex and free cash flow related? Heavy capital spending and free cash flow are linked by a simple accounting equation. Free cash flow equals cash generated from operations minus capital expenditures. When Amazon accelerates investment in data center infrastructure and servers, capex rises and free cash flow compresses.
Image source: Investor Relations.
In the trailing 12 months that ended with the second quarter, Amazon's free cash flow swung to an outflow of $7.6 billion. The swing was driven by a $66.1 billion year-over-year increase in property and equipment purchases, the bulk of which was tied to artificial intelligence infrastructure.
The company's core profitability engine, Amazon Web Services (AWS), saw revenue reach $42.2 billion in the quarter, up 37% year over year. Meanwhile, operating income from AWS jumped 64% to $16.6 billion. The contrast here is hard to overlook.
Even though Amazon's largest source of cash flow is running harder than ever, the simultaneous build-out of AI capacity is so large that free cash flow is turning negative. This inverse relationship is not a sign of operational weakness; rather, it is the arithmetic reality of front-loading a multi-year investment whose returns are expected to arrive only after new facilities and servers are brought online and filled with new customer workloads.
Jassy explains the economics of AI data centers During the earnings call, Jassy spent considerable time explaining why the current surge in infrastructure spending should ultimately pay off. He noted that data centers have useful lives of 30 years or more. Inside each facility, Amazon can cycle through five or six generations of servers. After the first generation, the unit economics improve because the initial capital outlay does not have to be repeated.
In the near term, however, Amazon is building several data centers at the same time -- ahead of the point at which these facilities can generate revenue. The result is elevated capex and pressure on free cash flow until new capacity is monetized and the servers have been utilized for a few years.
Amazon has navigated a similar cycle before, during the first wave of cloud computing. With that said, achieving meaningful profitability took longer, as cloud demand ramped up more gradually than the blistering pace of AI adoption.
Jassy made it clear that even with the revised $220 billion budget, Amazon still does not expect to have enough capacity to satisfy all of its AI demand in 2026. He anticipates the same bottleneck will persist into 2027 as enterprise customers remain early in the process of moving inference workloads into production.
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A $1 trillion opportunity awaits Perhaps the most striking remark of the earnings call came when Jassy updated the long-term ambitions for AWS. Management previously believed Amazon's cloud unit could grow into a business generating a few hundred billion dollars of annual revenue. Management now believes this figure will at least double and that AWS could "very possibly be a trillion-dollar annual revenue business for us in time."
These words matter because it frames the current capital-intensive nature of AI infrastructure not as a speculative bet but as one of necessity for a market of extraordinary scale. It also suggests that AI demand is neither a short-lived spike nor a maturing cycle already approaching saturation.
Instead, Jassy's remark suggests that AI remains in an early phase whose duration is measured in years -- even decades -- rather than quarters. The deliberate phrase "in time" underscores that the trillion-dollar potential of AWS is an ultra-long-horizon thesis rather than a near-term forecast.
This gives patient investors ample opportunity to accumulate Amazon stock while the company continues to invest, grow, and compound. Against this backdrop, Amazon functions less as a momentum trade and more as a blue chip compounder whose competitive position in cloud and AI is being reinforced precisely by the underlying spending that is currently pressuring its cash flow. While the path forward will not be without volatility, the clarity Jassy provided makes a prudent, multi-year accumulation strategy appear well-grounded.
Šéf AWS Matt Garman uvedl, že velká část kapacity je už zarezervovaná do roku 2027 a do roku 2028 a poptávka stále výrazně převyšuje nabídku. Amazon tak dál zvyšuje investice do AI infrastruktury.
Amazon’s AI spending is settling a debate between the bulls and the bears. Amazon Web Services (AWS) CEO Matt Garman spent Monday on Bloomberg Technology arguing that AWS’s growth is only getting started. He then went to X and quantified it in a way that undercuts every bear case that AI demand is topping out. “Much of our capacity is already spoken for through 2027 and into 2028, and demand still significantly outstrips supply,” Garman wrote. “We’re going to keep building to keep up with what customers are asking for.”
That single promise reframes the debate over hyperscaler capex. Garman is telling the market that AWS has already booked its next two years of infrastructure, which is why the company is comfortable spending at a historic pace.
The Numbers Behind the Quote Amazon.com (NASDAQ:AMZN | AMZN Price Prediction) reported Q2 2026 AWS revenue of $42.232 billion, up 37% year-over-year, which management flagged as the fastest growth in 18 quarters. AWS Q2 operating margin came in at 39.4%, and capital expenditures reached $54.208 billion in the quarter, a 68.44% year-over-year jump.
CEO Andy Jassy sized the AI stack directly, stating: “AWS is booming, growing 36.7% year-over-year in Q2, our fastest growth in 18 quarters, and our AI and Chips businesses each eclipsed run rates of more than $25 billion.” Both are growing at triple-digit rates. AWS chief Garman also flagged a large shift from training to inference workloads, the actual usage of models, which tends to produce sticky, recurring compute demand rather than one-off training bursts.
UBS estimates AWS growth will accelerate to 48% next year as Trainium scales with some help from OpenAI. Prediction markets are echoing the bullish buildout thesis: Polymarket traders assign a 96.3% probability that Amazon’s 2026 capex clears $190 billion. Shares have rallied 20.1% in the past five trading sessions.
The Suppliers Locked Into the Buildout If AWS capacity through 2028 is committed, the merchant silicon and interconnect vendors feeding those data centers have equally visible order books.
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Marvell Technology (NASDAQ:MRVL) posted Q1 FY2027 revenue of $2.418 billion, up 28% year over year, with data center contributing $1.833 billion, or 76% of the total pie. CEO Matt Murphy told investors, “We are seeing exceptional AI-related bookings, and as a result, we are significantly raising Marvell’s revenue outlook for both fiscal 2027 and fiscal 2028.” Marvell shares climbed 14.33% on August 4 as the AWS quote circulated.
Astera Labs (NASDAQ:ALAB), which sells connectivity silicon for scale-up AI racks, reported Q1 revenue of $308.4 million, up 93.4% year-over-year, and guided Q2 to a range of $355 million to $365 million. The stock is up 92.99% year-to-date.
Credo Technology (NASDAQ:CRDO) closed fiscal 2026 with full-year revenue of $1.34 billion, up 205.7%, and guided Q1 FY27 to a range of $465 million to $475 million. CEO Bill Brennan credited a vertically integrated approach that he said enables customers to accelerate cluster time-to-stability, maximize GPU utilization, and reduce data center power costs.
What to watch: whether Q3 AWS bookings and hyperscaler capex commentary from Marvell, Astera, and Credo confirm Garman’s 2028 visibility. If they do, Amazon’s AI spending starts to look less like a leap of faith and more like a supply chain already being claimed years in advance.
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Amazonem vlastněná Zoox získala dočasné federální povolení k provozu robotaxi bez volantu a může začít účtovat jízdné, nejprve v Las Vegas. Jde o první účelově postavené bezřidičové vozidlo s takovým schválením.
The race to operating fleets of driverless vehicle robotaxis is heating up among a number of significant competitors. Alphabet's (GOOG +0.77%)(GOOGL +1.11%) Waymo has already tallied up more than 220 million fully autonomous miles, rider-only with no supervision. Tesla's (TSLA +1.64%) Cybercab ambitions are well publicized, even if its driverless programs are only slowly expanding. But it was actually Amazon (AMZN -2.32%) that recently landed a big win against its competitors.
Details on Amazon approval Amazon-owned Zoox was just given temporary permission by the National Highway Traffic Safety Administration (NHTSA) to commercially deploy steering-wheel-free robotaxis, adding pressure to the robotaxi competition. This is significant because the vast majority of competitors, such as Waymo, are modifying traditional passenger cars. The difference is that the Zoox vehicle was developed from the ground up and is produced without manual controls, making it the first purpose-built driverless vehicle to receive approval.
Zoox vehicle in Las Vegas. Image source: Amazon.
"We can say pretty clearly that the systems in place on the Zoox exceed the equivalent performance requirements of a compliant vehicle," said the NHTSA's Jonathan Morrison regarding the agency granting temporary approval.
Zoox said the NHTSA's approval gives the company the federal go-ahead to begin charging for rides. Zoox acknowledged it would begin charging for its service in Las Vegas first, with additional markets to follow after various state requirements are met. Zoox's approval enables the company to commercially deploy up to 2,500 vehicles annually for two years, or a total of 5,000 vehicles.
It's a big win for Zoox against Waymo and Tesla, which are also racing to expand their autonomous ride-hailing services. While Waymo remains the clear market leader in operating paid fleets in multiple areas, this serves notice that a significant competitor with Amazon's backing will be a long-term competitor with the ability to scale.
What it all means For Tesla, it's a reminder that it still has to get its own approval federally, and without it, its physical fleet will be legally restricted compared to Zoox's. Currently, Tesla's robotaxi service is operating unsupervised rides with Model Y vehicles in Austin, Dallas, Houston, Miami, Orlando, and Tampa.
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While it's fair to say that Tesla CEO Elon Musk has been incorrectly predicting the mass rollout of autonomous vehicles for almost a decade, he isn't pulling back. In fact, he recently predicted via a video call at the Samson International Smart Mobility Summit in Tel Aviv that "10 years from now probably 90% of all distance driven will be driven by the AI in a self-driving car."
There's a lot riding on the driverless vehicle business for long-term Tesla investors. The company's massive market capitalization is supported by the belief that the company's transition from a traditional automaker to one that revolves around humanoid robots, robotaxi fleets, and artificial intelligence will grant it a more lucrative future. Currently, Tesla's robotaxi ambitions seem more hype than reality, and for investors, that's something that needs to change in the near term. Zoox receiving federal approval and beginning to charge for rides only applies more pressure for Tesla and Waymo.
Amazon nyní oceňuje svůj podíl v Anthropic na 190,4 miliardy USD, proti původním 13 miliardám USD. Růst hodnoty investice podpořil i zisk Amazonu za 2. čtvrtletí.
Amazon (AMZN -2.32%) has world-class cloud computing and online retail businesses, but its investment in Anthropic is fast becoming one of its greatest assets. Amazon has invested $13 billion in the artificial intelligence start-up, but in its most recent regulatory filing, Amazon now values that investment at a whopping $190.4 billion.
That’s a 14.6x gain in Amazon’s stake, and it helped Amazon record $62.64 billion in net income for the second quarter, as Amazon was able to claim paper profits of $53.39 billion in non-operating income on its balance sheet.
But the bigger story isn’t about Amazon’s accounting ledger. It's what the revaluation of Amazon’s investment says about Anthropic’s fast-growing value, and what that could mean for Amazon stock down the road.
Image source: Amazon.
Amazon’s current stake in AnthropicFirst, let’s look at the raw numbers. Amazon made an $8 billion investment in Anthropic in 2024, and followed that up this year with another $5 billion investment. Amazon reportedly has a 21% stake in the maker of Claude.
At the end of the first quarter, Amazon disclosed that its Anthropic stake had grown to $74.2 billion -- $42.2 billion in convertible notes and $32 billion in nonvoting preferred stock. Based on Amazon’s reported 21% ownership, that implies Anthropic’s value at the time was about $353 billion.
However, Anthropic is growing fast. In late May, Anthropic raised $65 billion in a fundraising round, valuing the company at $965 billion. It has also filed a confidential draft S-1 form with the Securities and Exchange Commission -- the first step to filing an IPO. So, when Anthropic does go public, it could raise its value even higher.
Now let’s turn back to Amazon. Its second-quarter filing shows that Amazon’s stake in Anthropic grew dramatically: convertible notes are now valued at $97.9 billion, and nonvoting preferred stock is valued at $92.5 billion, giving Amazon a total stake of $190.4 billion.
Clearly, Anthropic is becoming much more valuable, particularly as strong demand for its Claude AI is driving rapid revenue growth. Its list of AI enterprise customers includes Cognizant Technology Solutions, which rolled out the Claude model to its 350,000 employees, as well as IBM and Deloitte.
Anthropic is growing so quickly that it now has a $1.2 trillion valuation on secondary markets. If that’s the case, then Amazon’s stake could be worth up to $252 billion.
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Why the Anthropic value mattersAfter a 20% jump following its earnings report, Amazon currently has a market capitalization of about $3 trillion. And make no mistake -- its businesses are doing exceptionally well. Revenue in the second quarter topped $200.6 billion, with its North America segment growing 16% to $116.2 billion and its International segment jumping 15% to $42.2 billion.
Amazon Web Services (AWS) revenue soared by 37%, generating operating income of $16.6 billion, and Amazon increased its projected capex for the year from $200 billion to $220 billion as it continues to build out its industry-leading cloud computing division.
Anthropic will also be a key customer for Amazon, which obtained more than $100 billion in commitments from the AI start-up over the next decade. Amazon will provide up to 5 gigawatts of capacity for Anthropic to train and run Claude, and will provide an updated version of its Trainium AI chips and CPUs.
Regardless of when -- or if -- Anthropic finally goes public, Amazon will continue to benefit. The value of its equity stake should appreciate, and Anthropic will be a valued Amazon customer.
That’s tremendous value for Amazon’s $13 billion investment -- and in all likelihood, it will just continue to grow.
UBS odhaduje, že čistý zisk Amazonu by mohl do roku 2030 dosáhnout 509 miliard USD a překonat tak Nvidii. Tahounem má být AWS, které ve 2. čtvrtletí rostlo meziročně o 37 %.
The Number $509 billion. That is what UBS projects Amazon (NASDAQ:AMZN | AMZN Price Prediction) will earn in net income by 2030, according to a new estimate from the bank. If Amazon lands anywhere close to that figure, it would clear the current Wall Street consensus for Nvidia (NASDAQ:NVDA) 2030 net profit of roughly $450 billion and hand Amazon the title of the most profitable company on Earth. This is a UBS projection rather than company guidance or a reported figure.
What It Means UBS is laying out a multi-year ramp. The bank sees Amazon posting roughly $120 billion in net earnings in 2026, around $281 billion by 2028, and approximately $509 billion by 2030. On a per-share basis, UBS pencils out $45.16 in EPS at the end of that curve, which means Amazon is trading at about 6 times the bank’s 2030 profit estimate.
UBS projects Amazon’s net income to reach $509 billion by 2030, potentially surpassing Nvidia. The infographic highlights key growth drivers and performance metrics for Amazon as of Q2 FY2026. For context on where Amazon starts from: full-year 2025 net income was $77.67 billion on $716.92 billion in revenue. In the most recent quarter (Q2 FY2026), Amazon reported operating income of $27.46 billion, up 43% year over year, and net income of $62.65 billion. The reported net income figure was inflated by $53.4 billion of non-operating pre-tax income tied to the Anthropic investment, a one-time mark that will not repeat every quarter. The operating line is the clean read, and it is expanding at a rate that makes UBS’s ramp look less like fantasy.
The AWS Engine The math behind UBS’s projection sits inside one segment. AWS grew 37% year over year in Q2 FY2026 to $42.23 billion in revenue, its fastest growth in 18 quarters, at a 39.4% operating margin. Growth has accelerated for four straight quarters: 20% in Q3 2025, 24% in Q4 2025, 28% in Q1 2026, and now 37%.
UBS models AWS growth reaching 48% in 2027 as OpenAI begins running workloads on Amazon’s Trainium chips. That is the swing factor. Amazon’s AI and Chips businesses each eclipsed run rates of more than $25 billion in Q2, both growing at triple-digit rates. OpenAI has already committed to roughly 2 GW of Trainium capacity through AWS beginning in 2027, and Anthropic is on the hook for up to 5 GW of current and future Trainium chips. Layer 48% growth on top of a segment already running at a $169 billion annualized revenue pace, then compound that through the end of the decade, and AWS starts to look like the profit engine capable of dragging total net income into the half-trillion neighborhood.
Amazon is spending to make it happen. CEO Andy Jassy told investors Amazon will invest about $200 billion in capital expenditures across 2026 on AI infrastructure, custom chips, robotics, and satellites. Q2 capex alone hit $54.21 billion, up 68.44% year over year.
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Market Reaction Amazon shares closed at $284.02 on August 3, 2026, with the stock up 23.05% year to date and 32.26% over the past year. In the one week following the Q2 earnings report, the stock ran 22.75%, from $231.39 on July 27 to $284.02 on August 3. On the day of the Q2 report itself, shares moved roughly +4.50%. Amazon carries a market capitalization of roughly $2.92 trillion, while Nvidia sits at about $4.86 trillion.
Bull Case Long-term holders own a rare setup here: a business already generating $77.67 billion of annual net income and accelerating into its highest-margin, fastest-growing segment right as multi-gigawatt AI compute contracts start turning on. UBS’s $509 billion 2030 profit estimate implies roughly a sixfold ramp from 2025 net income. AWS growth has climbed for four consecutive quarters. Operating income is compounding at 43% year over year. Advertising, another high-margin segment, grew 26% to $19.81 billion in Q2 and TTM ad revenue has crossed $70 billion.
Guidance for the current quarter points to operating income of $22.5 billion to $26.5 billion, versus $17.4 billion in Q3 2025. Analysts have a $321.95 target price on the stock, with 16 Strong Buy, 43 Buy, and 3 Hold ratings and no Sells. If Amazon merely hits UBS’s $120 billion 2026 net income estimate, it will already be earning at a pace that closes the gap against Nvidia’s $120.07 billion in FY2026 net income. From there, UBS is arguing that Trainium-driven AWS acceleration does the rest of the work.
Bottom Line UBS’s $509 billion 2030 profit projection is a bank estimate rather than a commitment. But it puts a specific dollar value on what has been an abstract narrative: Amazon becoming the largest profit machine on the planet by the start of the next decade. The near-term catalyst is Q3 FY2026 earnings, with Amazon guiding net sales of $197.0 billion to $202.0 billion. For retirement-focused holders, the read is simple: the story hinges on AWS holding its acceleration and Trainium demand from OpenAI, Anthropic, and Meta converting into the profit ramp UBS is modeling. If the cloud engine keeps compounding, the world’s most valuable brand may soon be its most profitable one, too.
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New Jersey žaluje Amazon kvůli údajnému zneužití tržní síly vůči nezávislým doručovatelům v programu Delivery Service Partner. Stát tvrdí, že firma tlačila na nízké mzdy a špatné podmínky.
Item 1 of 2 A truck departs Amazon's fulfillment center during Cyber Monday in Robbinsville, New Jersey, U.S., December 1, 2025. REUTERS/Eduardo Munoz
[1/2]A truck departs Amazon's fulfillment center during Cyber Monday in Robbinsville, New Jersey, U.S., December 1, 2025. REUTERS/Eduardo Munoz Purchase Licensing Rights, opens new tab
CompaniesAug 4 (Reuters) - New Jersey sued Amazon.com on Tuesday, accusing the online retailer of abusing its market power over independent delivery drivers.
The state accused Amazon of using its dominance to impose low pay and poor conditions on drivers who deliver for the company via its Delivery Service Partner program. The lawsuit was filed in federal court in Newark, New Jersey.
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The program is run by Amazon's logistics arm and allows people to set up businesses to deliver packages locally. Those small businesses deliver 20 million packages a day for Amazon globally, according to the company.
The state alleges that Amazon punishes drivers who try to unionize and tries to keep independent businesses in the program from poaching each other's drivers in violation of antitrust law.
A spokesperson for Amazon did not immediately respond to a request for comment.
Amazon is fighting other antitrust lawsuits brought by the U.S. Federal Trade Commission and the state of California accusing the company of illegally monopolizing online retail markets. The company has denied those allegations.
Reporting by Jody Godoy in New York Editing by Nick Zieminski and Deepa Babington
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Jody Godoy reports on tech policy and antitrust enforcement, including how regulators are responding to the rise of AI. Reach her at [email protected]
Cathie Wood tends to buy when some of her favorite stocks pull back. On Monday -- with the market having its strongest first day of the month since late 2022 -- she was particularly busy, too. The co-founder and CEO of Ark Invest didn't let upticks get in the way of adding to some of her existing positions.
She was a buyer of CoreWeave (CRWV +5.85%), Amazon (AMZN -2.52%), and Rocket Lab (RKLB +5.79%), even as the shares rose 19%, 5%, and 8%, respectively, on Monday. Amazon did hit a new high during the day, but the same can't be said about the bookends. CoreWeave and Rocket Lab are trading 44% and 53% below their 52-week highs, respectively. Let's take a closer look at the three potentially opportunistic purchases by Ark in August.
Ark Investment Management CEO Cathie Wood. Image source: Getty Images.
1. CoreWeave CoreWeave stock rallied alongside other hyperscalers, but it would still have to more than double from here to revisit the all-time high it hit 14 months ago. The company, launched by a few hedge fund friends who initially bought a few GPUs to mine crypto -- before pivoting to the AI opportunity when the digital currency market sold off -- has been one of the market's more volatile investments since going public at $40 early last year.
Revenue rose 112% in its latest quarter, reported back in May. The top-line jump was better than expected, but the report wasn't well-received. A larger-than-projected loss disappointed investors, but it shouldn't have come as a surprise. CoreWeave had fallen short on the bottom line in two of the three previous reports. This is a top-line growth story, with revenue more than doubling in each quarter as a public company. It needs to invest in building out its empire at this stage, which introduces red ink on the other end of its red-hot revenue growth.
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CoreWeave was making positive waves even after the market closed on Monday. Analyst James Fish at Piper Sandler initiated coverage of the stock with a bullish overweight rating, praising CoreWeave's engineering team for its ability to achieve cost reductions as it continues to grow to meet the booming demand for AI infrastructure. His $151 price target offers 76% near-term upside even after Monday's jump.
CoreWeave also announced on Tuesday morning that it was expanding into Indonesia, marking its first push to establish a data center presence in the Asia-Pacific region. It will build out three facilities offering a total of 360 megawatts of contracted IT power. The data centers won't be available until 2028, but it's another bet that CoreWeave is making today that should keep growth booming tomorrow.
Investors won't have to wait long for the next day when CoreWeave shares may be on the move. It reports its second-quarter results next week, after the market closes on Tuesday.
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2. Amazon I'll start by saying that buying Amazon on the day its shares hit a new all-time high isn't technically bargain hunting. However, it was Wood's largest purchase. I couldn't leave the country's fifth-most-valuable company by market cap out of the mix. Ark Invest was a buyer of Amazon for all five of Wood's aggressive growth ETFs on Monday, and was her biggest buy in four of them.
Unlike CoreWeave, investors already know how Amazon fared in the second quarter. It reported last week. Net sales rose 20% to $200.6 billion for the quarter, fueled largely by a 37% jump in its thriving and high-margin Amazon Web Services (AWS) cloud-hosting business. Its flagship e-commerce business still managed to grow in the mid-teens -- up 16% in North America and up 15% everywhere else -- but AWS is the reason Amazon just delivered its strongest top-line surge in five years.
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3. Rocket Lab Rockets go up. Rockets go down. In recent weeks, rocket stocks have largely gone down. This is often a dinner bell for Wood if she's a believer in the industry and certain players in that space. Speaking of space, Rocket Lab is no stranger to space. Unlike many upstarts, Rocket Lab has generated meaningful revenue for years as a leading provider of space systems and launch services.
It's not profitable yet, but analysts expect it to be on an adjusted basis next year and on a reported basis by 2028. Demand is booming, with an order backlog of $2.2 billion at the end of the first quarter. It reports second-quarter results next week. It was targeting $225 million to $240 million in revenue for the quarter in May, a 61% year-over-year increase at the midpoint. Investors may have turned their back on space stocks this summer, but reality offers a kinder level of stargazing.
Akcie Amazonu po dosažení tržní hodnoty 3 biliony USD klesly. V pondělí přitom uzavřely na rekordu 284,02 USD, zatímco Jeff Bezos může podle plánu prodat až 15 milionů akcií za zhruba 4,3 miliardy USD. AWS ve 2. čtvrtletí zvýšila tržby o 37 % na 42,2 miliardy USD.
Amazon stock NASDAQ:AMZN slipped overnight after the company entered the $3 trillion club, turning attention towards founder Jeff Bezos and a share-sale plan now worth billions.
The stock closed 4.6% higher at a record $284.02 on Monday, pushing Amazon’s market value above $3 trillion.
The rally followed a second-quarter report in which Amazon Web Services revenue grew 37%, its fastest pace in 18 quarters.
As per Amazon’s annual filing with the US Securities and Exchange Commission, Jeff Bezos can sell up to 15 million Amazon shares.
At Monday’s closing price, the full 15-million-share allocation would be worth about $4.3 billion. That is a major personal transaction, but it represents only around 0.14% of Amazon’s market value.
The optics are nevertheless striking. Amazon’s founder is positioned to convert shares into cash after the company reached a record valuation and Wall Street grew more confident that its artificial-intelligence investments are producing measurable demand.
The sale should not be read as a sudden bearish call. Amazon’s annual filing shows Bezos adopted the Rule 10b5-1 plan on November 14, 2025. It permits sales through February 26, 2027, subject to conditions.
That structure allows transactions to occur over an extended period and reduces the significance of any single sale date.
It also means Bezos did not decide to unload 15 million shares after Amazon crossed $3 trillion.
The plan looks well timed, but disciplined diversification at a strong valuation is different from declaring that Amazon has peaked.
Amazon reached the milestone because investors received clearer evidence that cloud and AI expenditure is translating into revenue.
AWS sales climbed 37% to $42.2 billion, accelerating from 28% growth in the first quarter and beating expectations for roughly 31% expansion. Operating income rose to $16.6 billion from $10.2 billion a year earlier.
Bernstein analyst Mark Shmulik said AWS had “finally” reached its long-awaited growth inflection.
Evercore ISI analyst Mark Mahaney described the quarter as a decisive revenue beat with Amazon moving through its capital-expenditure digestion phase faster and more profitably than feared.
Morningstar analyst Dan Romanoff told Barron’s that 37% growth was remarkable given AWS’s scale.
He said demand across conventional cloud and AI workloads supported management’s investment plans.
Those comments suggest Bezos would be selling into improving fundamentals, rather than a rally driven solely by market enthusiasm.
Amazon increased expected 2026 capital expenditure to $220 billion from $200 billion as it builds data centres, purchases chips and expands AI infrastructure.
Trailing 12-month free cash flow meanwhile fell to a $7.6 billion outflow, compared with positive cash generation a year earlier.
Zacks Investment Research strategist Ethan Feller told MarketWatch that the negative position was intentional but still “warrants monitoring” while spending remains elevated.
Amazon’s reported $62.6 billion quarterly net income also included $53.4 billion of pre-tax non-operating income, primarily linked to the rising value of its Anthropic investment, rather than ordinary business operations.
That makes cash generation the real test of the $3 trillion valuation.
AWS must sustain rapid growth, protect margins and ultimately produce enough cash to fund infrastructure while rewarding shareholders.
Amazon’s (NASDAQ:AMZN | AMZN Price Prediction) Q2 2026 earnings reset the AWS narrative. Cloud growth reaccelerated to 37%, the fastest pace in 18 quarters, and Wall Street is scrambling to catch up. Our 24/7 Wall St. price target sits well above analyst consensus.
The stock trades at $271.58 as of August 3, 2026. Our 24/7 Wall St. price target is $432.91, implying 59.4% upside over 12 months. Our recommendation is buy, with 90% confidence. This is our highest conviction call on a mega-cap this quarter.
24/7 Wall St. Price Target Summary Metric Value Current Price $271.58 24/7 Wall St. Price Target $432.91 Upside 59.4% Recommendation BUY Confidence Level 90% Why AWS Reaccelerating to 37% Changes the Story Amazon rose 17% in the week ended July 31 and is up 17.66% year to date. The stock closed at $271.58 after the Q2 earnings release, roughly 16% off the 52-week high of $278.56.
The July 30 report was the catalyst. Revenue landed at $200.61 billion, up 19.6% YoY, and EPS of $5.75 beat the $1.8227 consensus (inflated by a $53.4 billion Anthropic gain). AWS delivered $42.23 billion at a 39.4% operating margin. Morgan Stanley reiterated Buy with a $335 target.
The Case for $486 and Higher Bulls see a path to $485.91. AWS backlog remains capacity-constrained, and Amazon’s $220 billion planned 2026 capex fills that capacity with Trainium chips, Graviton5 servers, and Anthropic-linked inference workloads.
Advertising compounds at 26% YoY and hit $19.81 billion in Q2. Q3 operating income guidance of $22.5 billion to $26.5 billion against $17.4 billion a year ago signals operating leverage.
The Risks Worth Watching Free cash flow turned negative at -$7.6 billion TTM as capex hit $54.2 billion in a single quarter. The bear scenario lands at $355.96 if AWS growth normalizes and capex returns fail to materialize.
Bulls argue FCF pressure reflects infrastructure investment that Microsoft and Alphabet match dollar for dollar, and the $53.4 billion Anthropic gain validates the AI thesis.
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How Amazon Compares to Microsoft and Alphabet The cleanest comps are the other two hyperscalers competing for AI workloads.
Microsoft (NASDAQ:MSFT) trades at a trailing P/E of 26x with Azure growing 43%, ahead of AWS’s 37%. Amazon’s AWS segment operating margin (39.4%) rivals Microsoft’s Intelligent Cloud economics, and AMZN trades at a meaningful discount on trailing multiples.
Alphabet (NASDAQ:GOOGL) is the growth outlier: Google Cloud grew 82% in Q2 to $24.77 billion, and the stock trades at a trailing P/E of 16x. Alphabet’s cheaper multiple is the strongest argument for restraint on our target.
Company Trailing P/E Cloud Growth Amazon 22x 37% Microsoft 26x 43% Alphabet 16x 82% Amazon sits between Microsoft’s premium multiple and Alphabet’s discount, with cloud growth accelerating rather than decelerating.
Amazon Price Prediction 2026-2030 The 24/7 Wall St. price target of $432.91 reflects a buy rating at 90% confidence. AWS margin expansion drives the equity story: a 39.4% operating margin on a re-accelerating $170 billion annualized revenue base carries the call.
The bull thesis holds if AWS sustains 30%-plus growth into Q4 and capex converts to FCF in 2027. It weakens if AWS growth slips below 25% and capex climbs without margin follow-through.
Year 24/7 Wall St. Price Target 2026 $432.91 2027 $540 2028 $670 2029 $820 2030 $971 These projections assume AWS reacceleration and capex converting to durable operating income. Faster Anthropic monetization could drive upside; hyperscaler capex overbuild would drive downside.
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Amazon poprvé překonal tržní hodnotu 3 biliony USD díky silným výsledkům a optimismu kolem AI, která zvyšuje poptávku po cloudových službách. Akcie byly naposledy o 5,5 % výše a letos rostou přes 23 %.
Amazon logo outside an Amazon warehouse in Manchester, Britain, October 28, 2025. REUTERS/Phil Noble/File Photo Purchase Licensing Rights, opens new tab
CompaniesAug 3 (Reuters) - Amazon's market value topped $3 trillion for the first time on Monday, helped by a sharp rally following strong earnings and signs that the AI boom is driving fresh demand for its cloud-computing services, the company's main profit engine.
Its shares (AMZN.O), opens new tab were last up 5.5% at $286.20, hitting a record high and taking their yearly gains to over 23%.
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The Seattle-based e-commerce and cloud computing giant's stock surged 15% on Friday after it delivered its strongest cloud growth in more than four years and raised its annual capital spending forecast.
Amazon and Microsoft are the only two of the "Magnificent Seven" companies, out of the six that have reported so far, whose AI spending has paid off in investors' eyes. Tesla, Alphabet and Meta were punished as their massive spending plans hit free cash flow last quarter.
Along with other tech giants on Wall Street, Amazon has been pouring billions to build out its AI infrastructure. It disclosed a new investment in Anthropic in April, which follows Amazon's announcement earlier this year that it would invest up to $50 billion in OpenAI.
It took just over two years for the company, founded by Jeff Bezos back in 1994, to add another trillion dollars to its market value after hitting a $2 trillion valuation for the first time in June 2024.
Apple (AAPL.O), opens new tab, Microsoft (MSFT.O), opens new tab, Alphabet (GOOGL.O), opens new tab and Nvidia (NVDA.O), opens new tab are the other companies that have recorded a market value of $3 trillion in the past. Nvidia is currently the world's biggest company with a market capitalization close to $5 trillion.
Reporting by Shashwat Chauhan and Purvi Agarwal in Bengaluru; Editing by Devika Symnath and Shinjini Ganguli
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Decker Wealth Management LLC v prvním čtvrtletí otevřela novou pozici v Amazonu: koupila 33 074 akcií za zhruba 6,888 milionu USD. Amazon zároveň oznámil zisk na akcii 5,75 USD a tržby 200,61 miliardy USD, což překonalo odhady.
Decker Wealth Management LLC bought a new position in Amazon.com, Inc. (NASDAQ:AMZN – Free Report) in the first quarter, according to its most recent disclosure with the SEC. The firm bought 33,074 shares of the e-commerce giant’s stock, valued at approximately $6,888,000. Amazon.com comprises approximately 1.6% of Decker Wealth Management LLC’s portfolio, making the stock its 25th biggest position.
Several other institutional investors have also modified their holdings of AMZN. MilWealth Group LLC raised its stake in Amazon.com by 79.0% during the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock worth $41,000 after purchasing an additional 79 shares during the period. Lifetime Wealth Management P.C. purchased a new stake in shares of Amazon.com in the 4th quarter valued at approximately $45,000. Elkhorn Partners Limited Partnership increased its holdings in shares of Amazon.com by 900.0% during the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock worth $46,000 after buying an additional 180 shares during the last quarter. Fairway Wealth LLC increased its holdings in shares of Amazon.com by 95.6% during the 4th quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock worth $51,000 after buying an additional 108 shares during the last quarter. Finally, Prudent Man Investment Management Inc. raised its position in shares of Amazon.com by 87.7% during the 4th quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant’s stock valued at $53,000 after buying an additional 107 shares during the period. Hedge funds and other institutional investors own 72.20% of the company’s stock.
Analyst Upgrades and Downgrades A number of research firms recently commented on AMZN. HSBC reiterated a “buy” rating and issued a $310.00 price objective on shares of Amazon.com in a report on Friday. Truist Financial lifted their target price on Amazon.com from $320.00 to $350.00 and gave the company a “buy” rating in a research report on Friday. Arete Research upped their price target on Amazon.com from $301.00 to $310.00 and gave the company a “buy” rating in a research note on Monday, May 18th. Guggenheim reiterated a “buy” rating and set a $320.00 price target (up from $300.00) on shares of Amazon.com in a report on Thursday, April 30th. Finally, Telsey Advisory Group set a $335.00 price objective on Amazon.com and gave the stock an “outperform” rating in a research report on Friday. Fifty-six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Amazon.com currently has a consensus rating of “Moderate Buy” and an average price target of $322.56.
Get Our Latest Research Report on AMZN
Insider Activity at Amazon.com In other news, VP Shelley Reynolds sold 2,363 shares of the stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $262.38, for a total transaction of $620,003.94. Following the sale, the vice president owned 119,780 shares of the company’s stock, valued at approximately $31,427,876.40. This represents a 1.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the sale, the senior vice president directly owned 41,190 shares in the company, valued at $11,060,750.70. This represents a 18.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 76,867 shares of company stock worth $20,253,702 over the last ninety days. Company insiders own 8.90% of the company’s stock.
Amazon.com Stock Performance AMZN opened at $271.58 on Monday. Amazon.com, Inc. has a 52 week low of $196.00 and a 52 week high of $278.56. The business has a fifty day simple moving average of $245.70 and a 200-day simple moving average of $236.15. The firm has a market cap of $2.92 trillion, a P/E ratio of 21.85, a P/E/G ratio of 2.01 and a beta of 1.45. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. The business had revenue of $200.61 billion during the quarter, compared to analysts’ expectations of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The company’s revenue was up 19.6% on a year-over-year basis. During the same period in the previous year, the firm posted $1.68 earnings per share. On average, equities analysts expect that Amazon.com, Inc. will post 7.84 earnings per share for the current year.
More Amazon.com News Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Amazon reported record quarterly sales of $200.6 billion, up nearly 20% year over year, while earnings per share of $5.75 significantly exceeded the $1.82 consensus estimate. Operating income rose 43% to $27.5 billion. Amazon second-quarter results Positive Sentiment: AWS revenue accelerated 37% to $42.2 billion—its fastest growth in 18 quarters—beating expectations as enterprise AI demand strengthened. The result helped ease concerns that Amazon’s massive AI infrastructure investments would not produce adequate returns. Amazon AWS growth Positive Sentiment: Advertising revenue climbed 26% to approximately $19.8 billion, while stronger e-commerce activity and robotics-supported fulfillment added to the broad-based quarterly beat. Positive Sentiment: Multiple firms raised their price targets following the results, including JPMorgan to $365, Benchmark to $400, Truist to $350, and RBC to $330. Analysts cited accelerating AWS growth, AI monetization and margin potential. Amazon analyst price targets Positive Sentiment: Amazon completed the remaining $35 billion of its planned OpenAI investment, bringing its total commitment to $50 billion. The partnership could support future AWS demand, although it also increases capital commitments. Amazon OpenAI investment Neutral Sentiment: Amazon raised its 2026 capital-spending outlook to $220 billion to expand AI and cloud capacity. Management sees demand extending into 2028, but the scale of spending will keep free cash flow and funding requirements under scrutiny. Neutral Sentiment: The company expects third-quarter revenue of $197 billion to $202 billion, below the roughly $204.6 billion analyst consensus, creating a potential near-term headwind despite the strong quarter. Negative Sentiment: Amazon faces consumer lawsuits alleging misleading seafood sustainability claims and the sale of protein powder allegedly contaminated with heavy metals. The cases could create legal, reputational and compliance costs, though their financial impact is currently unclear. Amazon consumer lawsuit Amazon.com Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
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SummaryAmazon (AMZN) earns a Buy rating, with fair value estimated at $320, reflecting AWS-driven operating income growth and improving retail margins. AWS revenue surged 37% to $42.2B, operating margin expanded to 39.4%, and backlog reached $496B, supporting multi-year growth visibility. Capital intensity remains a risk; free cash flow is negative and debt has doubled, but management projects strong operating income growth through 2026. Failure points include AWS growth below 25%, margin compression, or retail/advertising underperformance, which could materially weaken the investment thesis. Yuriy T/iStock Editorial via Getty Images
The Quarter That Changed The Capital-Spending Debate Amazon's (AMZN) most powerful bull thesis isn't just about AI ultimately validating the massive amount being spent now. Rather, Amazon is generating sufficient incremental
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Amazon ve 2. čtvrtletí zvýšil tržby AWS o 36,8 % na 42,2 miliardy USD a provozní zisk o 63,6 % na 16,6 miliardy USD. Firma zároveň plánuje letos kapitálové výdaje ve výši 220 miliard USD.
Amazon (AMZN +15.32%) has richly rewarded investors over the years. However, its more recent performance has left something to be desired.
The shares gained 2.5% over the last three months through July 31. Large-cap stocks, as measured by the S&P 500 index, gained 3.9%. Amazon also trailed growth stocks, with the S&P 500 Growth index increasing 4.2%.
Has the market underappreciated Amazon's growth prospects?
Image source: Getty Images.
Investing for the long run Amazon commands a large share of the online retail marketplace. This includes nearly 36% of U.S. e-commerce sales in 2025.
These are part of the North American and international segments, which produced 79% of first-half sales, but only 40% of Amazon's operating profit.
Fortunately, Amazon relies on the fast-growing, high-margin Amazon Web Services (AWS) business for the bulk of its profit. The cloud-computing business has done well as organizations clamor for data. With the rapid growth of generative artificial intelligence, its data centers became even more relevant.
Competition remains limited due to the enormous resources needed to build and maintain these large data centers. AWS has the leading market share in this fast-growing area, at 28% as of the first quarter. That's followed by Microsoft's Azure at 21% and Alphabet's Google Cloud at 14%. The remaining participants have 4% or less of the market.
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AWS continues to grow its sales rapidly. That includes a 36.8% year-over-year gain in the second quarter to $42.2 billion, driving a 63.6% increase in operating income to $16.6 billion.
Is the stock a buy? With the company's dominant position in cloud computing and online retail, why has the stock lagged the market lately? Investors got spooked by management's spending plan, including a projected $220 billion in capital expenditures this year. That's an increase from $131.8 billion in 2025, and higher than the anticipated $200 million outlined earlier in the year. But with management investing to meet demand, this seems like a sound strategy.
Meanwhile, the sluggish stock price movement created a better valuation for investors. Over the last year, the price-to-earnings (P/E) ratio dropped from 35 to 22. That's less than half the five-year median of 50. Amazon's stock also trades at an attractive valuation compared to the S&P 500's P/E ratio of 29.
It's rare when a company with dominant market positions, including in the fast-growing cloud-computing business, trades at a discount, both historically and relative to the market. That makes Amazon shares a compelling buying opportunity.
Amazon po silných výsledcích za 2. čtvrtletí vyskočil o 15,32 %. Nejvíc investory zaujala prognóza Andyho Jassyho, že AWS může časem dosáhnout tržeb ve výši 1 bilionu USD.
Amazon (AMZN +15.32%) shares surged after a strong second-quarter earnings report. What likely really grabbed investors' attention was CEO Andy Jassy predicting that its cloud computing unit, Amazon Web Services (AWS), could become a $1 trillion revenue business. Jassy is not known for his bold predictions, unlike Elon Musk, so this likely carried more weight with investors.
Cloud growth keeps accelerating The highlight of Amazon's quarter was once again AWS, with revenue surging 37% year over year to $42.2 billion. That was an acceleration from the 28% growth it saw in the first quarter and the 24% growth it saw in the fourth quarter. It was AWS' fastest revenue growth in nearly four and a half years (18 quarters).
Jassy said that both its artificial intelligence (AI) and chip businesses now had more than $25 billion revenue run rates, with its AI business growing by triple digits. Its backlog also grew by triple digits to $496 billion.
Operating income in the segment, meanwhile, jumped 63% to $16.6 billion. Its operating margin of 39% has now risen for four straight quarters, helped by use of its custom chips and investments in software and optimization. While Jassy said margins could fluctuate, he also said the steady rise hasn't been random.
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Amazon's e-commerce operation, meanwhile, continues to perform well. Its North America sales jumped by 16% year over year to $116.2 billion, while international sales rose 15% to $42.2 billion. Advertising continues to be a big driver, with ad revenue climbing 26% to $19.8 billion, fueled by its sponsored ad business.
The company once again saw nice operating leverage in its North American e-commerce operations, with its operating income for its North American segment jumping 21% to $9.1 billion. Its international segment saw operating income rise 15% to $1.7 billion.
Overall, Amazon's revenue jumped by 20% year over year to $200.61 billion, which easily topped the $196.47 billion analyst consensus, as compiled by LSEG. Earnings per share (EPS) more than tripled to $2.78, but they included a large gain from Amazon's investment in Anthropic, so they were not comparable to analyst estimates for EPS of $1.82.
Looking ahead, Amazon projected that its third-quarter revenue would climb to between $197 billion and $202 billion (representing growth of between 9% and 12%), which was below the $204.1 billion consensus. Adjusted for the shift in Prime Day, growth would be between 13% and 16%. Currency is expected to be an 80-basis-point drag.
Jassy also said Amazon would increase its capex budget this year, taking it from $200 billion to $220 billion, largely due to higher memory costs. He said AWS demand continues to outstrip capacity and that this will continue in 2027, while adding that "the demand we already have for 2028 is striking." Jassy topped it off by saying he sees AWS becoming a $1 trillion business in time, with strong ROIC (return on invested capital) and free cash flow.
He also went over some basic economics of the cloud business, noting that AWS should break even on its server and networking investments in two to three years, while its servers have useful lives of five to six years and it signs five-year leases. The company's data centers, meanwhile, have over 30-year useful lives, and the economics become stronger over time as Amazon doesn't have to make these upfront data center investments.
Image source: Getty Images.
Jassy has long been derided given the underperformance of Amazon's stock, despite the strong job he's done positioning both the company's e-commerce and cloud computing businesses. However, I think the vision he laid out for AWS becoming a $1 trillion revenue business and simply explaining AWS' economics really struck a chord with investors.
Even after the jump in its stock price, Amazon still trades at an attractive valuation, with a forward price-to-earnings ratio of about 31 times 2026 analyst estimates and 27 times 2027 estimates. That's still a historically low valuation for the stock and well below its retail peers Walmart and Costco. With its e-commerce business humming along and AWS gaining strong momentum, the stock still looks like a long-term buy at these levels.
Audent Global Asset Management ve 1. čtvrtletí snížila podíl v Amazonu o 20,5 % na 19 271 akcií v hodnotě 4,01 mil. USD. Amazon tvoří 4,2 % jejího portfolia.
Audent Global Asset Management LLC lowered its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 20.5% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 19,271 shares of the e-commerce giant’s stock after selling 4,970 shares during the quarter. Amazon.com comprises approximately 4.2% of Audent Global Asset Management LLC’s holdings, making the stock its 7th largest holding. Audent Global Asset Management LLC’s holdings in Amazon.com were worth $4,014,000 as of its most recent SEC filing.
A number of other hedge funds have also recently bought and sold shares of AMZN. Brighton Jones LLC raised its stake in shares of Amazon.com by 10.9% in the fourth quarter. Brighton Jones LLC now owns 4,036,091 shares of the e-commerce giant’s stock valued at $885,478,000 after purchasing an additional 397,007 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in Amazon.com by 4.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 25,045 shares of the e-commerce giant’s stock worth $5,495,000 after buying an additional 986 shares in the last quarter. Bank Pictet & Cie Europe AG increased its holdings in Amazon.com by 2.8% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,016,869 shares of the e-commerce giant’s stock valued at $442,481,000 after buying an additional 54,987 shares during the period. Highview Capital Management LLC DE increased its holdings in Amazon.com by 5.5% in the 4th quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant’s stock valued at $6,357,000 after buying an additional 1,518 shares during the period. Finally, Liberty Square Wealth Partners LLC acquired a new position in shares of Amazon.com in the 4th quarter valued at $2,153,000. 72.20% of the stock is owned by institutional investors.
Analyst Ratings Changes Several research analysts recently issued reports on AMZN shares. Guggenheim reissued a “buy” rating and issued a $320.00 price target (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. Scotiabank reaffirmed an “outperform” rating and set a $325.00 price objective (up from $275.00) on shares of Amazon.com in a report on Thursday, April 30th. HSBC reissued a “buy” rating and issued a $310.00 target price on shares of Amazon.com in a report on Friday. Rosenblatt Securities raised their target price on Amazon.com from $332.00 to $345.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price target on shares of Amazon.com in a research report on Friday. Fifty-six investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $322.12.
Check Out Our Latest Report on AMZN
Insider Transactions at Amazon.com In other news, CEO Douglas J. Herrington sold 27,500 shares of the business’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $275.00, for a total value of $7,562,500.00. Following the sale, the chief executive officer directly owned 471,361 shares in the company, valued at $129,624,275. The trade was a 5.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the company’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $262.38, for a total value of $620,003.94. Following the transaction, the vice president directly owned 119,780 shares of the company’s stock, valued at $31,427,876.40. This represents a 1.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 135,719 shares of company stock worth $36,438,002. Company insiders own 8.90% of the company’s stock.
Trending Headlines about Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Amazon reported record quarterly sales of $200.6 billion, up nearly 20% year over year, while earnings per share of $5.75 significantly exceeded the $1.82 consensus estimate. Operating income rose 43% to $27.5 billion. Amazon second-quarter results Positive Sentiment: AWS revenue accelerated 37% to $42.2 billion—its fastest growth in 18 quarters—beating expectations as enterprise AI demand strengthened. The result helped ease concerns that Amazon’s massive AI infrastructure investments would not produce adequate returns. Amazon AWS growth Positive Sentiment: Advertising revenue climbed 26% to approximately $19.8 billion, while stronger e-commerce activity and robotics-supported fulfillment added to the broad-based quarterly beat. Positive Sentiment: Multiple firms raised their price targets following the results, including JPMorgan to $365, Benchmark to $400, Truist to $350, and RBC to $330. Analysts cited accelerating AWS growth, AI monetization and margin potential. Amazon analyst price targets Positive Sentiment: Amazon completed the remaining $35 billion of its planned OpenAI investment, bringing its total commitment to $50 billion. The partnership could support future AWS demand, although it also increases capital commitments. Amazon OpenAI investment Neutral Sentiment: Amazon raised its 2026 capital-spending outlook to $220 billion to expand AI and cloud capacity. Management sees demand extending into 2028, but the scale of spending will keep free cash flow and funding requirements under scrutiny. Neutral Sentiment: The company expects third-quarter revenue of $197 billion to $202 billion, below the roughly $204.6 billion analyst consensus, creating a potential near-term headwind despite the strong quarter. Negative Sentiment: Amazon faces consumer lawsuits alleging misleading seafood sustainability claims and the sale of protein powder allegedly contaminated with heavy metals. The cases could create legal, reputational and compliance costs, though their financial impact is currently unclear. Amazon consumer lawsuit Amazon.com Price Performance Shares of AMZN opened at $271.58 on Friday. The stock has a 50 day simple moving average of $245.70 and a 200 day simple moving average of $236.22. Amazon.com, Inc. has a 52-week low of $196.00 and a 52-week high of $278.56. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18. The firm has a market capitalization of $2.92 trillion, a PE ratio of 21.85, a P/E/G ratio of 1.75 and a beta of 1.46.
Amazon.com (NASDAQ:AMZN – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 19.59%. The company had revenue of $200.61 billion during the quarter, compared to analysts’ expectations of $197.03 billion. During the same quarter in the prior year, the company earned $1.68 earnings per share. The business’s quarterly revenue was up 19.6% compared to the same quarter last year. Sell-side analysts predict that Amazon.com, Inc. will post 7.84 EPS for the current fiscal year.
Amazon.com Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
Featured Stories Five stocks we like better than Amazon.com Chevron’s Strong Quarter Shows Why It Still Leads the Energy Sector Amazon’s Earnings Beat Shows Why AWS Is Back at the Center of the Bull Case Apple’s Record Quarter Could Not Outrun Its Guidance Problem McKesson’s Compounding Keeps Adding Up Want to see what other hedge funds are holding AMZN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amazon.com, Inc. (NASDAQ:AMZN – Free Report).
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Aviance Capital Partners v 1. čtvrtletí zvýšil podíl ve společnosti Amazon o 2,3 % a koupil dalších 3 081 akcií. Po transakci držel 137 027 akcií v hodnotě 28,539 mil. USD.
Aviance Capital Partners LLC raised its position in Amazon.com, Inc. (NASDAQ:AMZN) by 2.3% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 137,027 shares of the e-commerce giant’s stock after acquiring an additional 3,081 shares during the quarter. Amazon.com makes up about 3.3% of Aviance Capital Partners LLC’s holdings, making the stock its 5th biggest holding. Aviance Capital Partners LLC’s holdings in Amazon.com were worth $28,539,000 at the end of the most recent reporting period.
Several other institutional investors and hedge funds also recently added to or reduced their stakes in AMZN. Annis Gardner Whiting Capital Advisors LLC increased its position in shares of Amazon.com by 7.1% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 45,912 shares of the e-commerce giant’s stock valued at $9,562,000 after purchasing an additional 3,039 shares during the last quarter. Pavion Blue Capital LLC lifted its position in shares of Amazon.com by 0.8% during the 1st quarter. Pavion Blue Capital LLC now owns 25,897 shares of the e-commerce giant’s stock worth $5,394,000 after purchasing an additional 217 shares during the last quarter. GatePass Capital LLC grew its stake in shares of Amazon.com by 17.7% during the first quarter. GatePass Capital LLC now owns 7,625 shares of the e-commerce giant’s stock worth $1,588,000 after purchasing an additional 1,145 shares in the last quarter. German American Bancorp Inc. increased its holdings in Amazon.com by 1.1% in the first quarter. German American Bancorp Inc. now owns 151,064 shares of the e-commerce giant’s stock valued at $31,462,000 after buying an additional 1,587 shares during the last quarter. Finally, California Public Employees Retirement System raised its stake in Amazon.com by 8.7% in the first quarter. California Public Employees Retirement System now owns 21,785,734 shares of the e-commerce giant’s stock valued at $4,537,315,000 after buying an additional 1,735,857 shares in the last quarter. Institutional investors and hedge funds own 72.20% of the company’s stock.
Analyst Upgrades and Downgrades A number of analysts have issued reports on AMZN shares. Telsey Advisory Group set a $335.00 price target on Amazon.com and gave the stock an “outperform” rating in a report on Friday. New Street Research increased their price objective on Amazon.com from $280.00 to $350.00 and gave the company a “buy” rating in a report on Monday, May 4th. Morgan Stanley reissued an “overweight” rating and set a $335.00 target price (up from $330.00) on shares of Amazon.com in a research report on Friday. Royal Bank Of Canada upped their price target on Amazon.com from $320.00 to $330.00 and gave the company an “outperform” rating in a report on Friday. Finally, Bank of America increased their price target on shares of Amazon.com from $310.00 to $320.00 and gave the company a “buy” rating in a research note on Friday. Fifty-six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $322.12.
Get Our Latest Stock Analysis on AMZN
Key Amazon.com News Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: Amazon reported record quarterly sales of $200.6 billion, up nearly 20% year over year, while earnings per share of $5.75 significantly exceeded the $1.82 consensus estimate. Operating income rose 43% to $27.5 billion. Amazon second-quarter results Positive Sentiment: AWS revenue accelerated 37% to $42.2 billion—its fastest growth in 18 quarters—beating expectations as enterprise AI demand strengthened. The result helped ease concerns that Amazon’s massive AI infrastructure investments would not produce adequate returns. Amazon AWS growth Positive Sentiment: Advertising revenue climbed 26% to approximately $19.8 billion, while stronger e-commerce activity and robotics-supported fulfillment added to the broad-based quarterly beat. Positive Sentiment: Multiple firms raised their price targets following the results, including JPMorgan to $365, Benchmark to $400, Truist to $350, and RBC to $330. Analysts cited accelerating AWS growth, AI monetization and margin potential. Amazon analyst price targets Positive Sentiment: Amazon completed the remaining $35 billion of its planned OpenAI investment, bringing its total commitment to $50 billion. The partnership could support future AWS demand, although it also increases capital commitments. Amazon OpenAI investment Neutral Sentiment: Amazon raised its 2026 capital-spending outlook to $220 billion to expand AI and cloud capacity. Management sees demand extending into 2028, but the scale of spending will keep free cash flow and funding requirements under scrutiny. Neutral Sentiment: The company expects third-quarter revenue of $197 billion to $202 billion, below the roughly $204.6 billion analyst consensus, creating a potential near-term headwind despite the strong quarter. Negative Sentiment: Amazon faces consumer lawsuits alleging misleading seafood sustainability claims and the sale of protein powder allegedly contaminated with heavy metals. The cases could create legal, reputational and compliance costs, though their financial impact is currently unclear. Amazon consumer lawsuit Amazon.com Trading Up 15.3% Shares of AMZN opened at $271.58 on Friday. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01. Amazon.com, Inc. has a 1-year low of $196.00 and a 1-year high of $278.56. The stock has a market cap of $2.92 trillion, a price-to-earnings ratio of 21.85, a price-to-earnings-growth ratio of 1.75 and a beta of 1.46. The firm has a 50 day simple moving average of $245.70 and a 200-day simple moving average of $236.22.
Amazon.com (NASDAQ:AMZN – Get Free Report) last posted its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a return on equity of 19.59% and a net margin of 17.44%.The firm had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. During the same quarter in the prior year, the company earned $1.68 EPS. Amazon.com’s revenue was up 19.6% on a year-over-year basis. Equities analysts forecast that Amazon.com, Inc. will post 7.84 EPS for the current fiscal year.
Insider Buying and Selling at Amazon.com In other news, CEO Douglas J. Herrington sold 1,000 shares of Amazon.com stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $239.77, for a total value of $239,770.00. Following the completion of the sale, the chief executive officer owned 484,527 shares of the company’s stock, valued at $116,175,038.79. The trade was a 0.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 15,467 shares of the company’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $263.40, for a total value of $4,074,007.80. Following the completion of the transaction, the chief executive officer owned 14,159 shares of the company’s stock, valued at $3,729,480.60. The trade was a 52.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 135,719 shares of company stock valued at $36,438,002. 8.90% of the stock is currently owned by insiders.
Amazon.com Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
Featured Stories Five stocks we like better than Amazon.com Chevron’s Strong Quarter Shows Why It Still Leads the Energy Sector Amazon’s Earnings Beat Shows Why AWS Is Back at the Center of the Bull Case Apple’s Record Quarter Could Not Outrun Its Guidance Problem McKesson’s Compounding Keeps Adding Up Want to see what other hedge funds are holding AMZN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amazon.com, Inc. (NASDAQ:AMZN – Free Report).
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Amazon ve 2. čtvrtletí zvýšil tržby o 20 % na 200,6 miliardy USD a AWS vzrostlo o 37 % na 42,2 miliardy USD. Akcie po výsledcích v pátek stouply asi o 15 %.
Amazon (AMZN +15.32%) reported its second-quarter results on Thursday afternoon, and the release carried a figure that can scare investors off: Free cash flow for the trailing 12 months came in at an outflow of $7.6 billion. A year earlier, that figure was an inflow of $18.2 billion.
The market barely blinked. Shares of the e-commerce and cloud computing giant closed up about 15% Friday, at around $271 -- near the top of their 52-week range.
So investors watched a company report negative free cash flow and bid the stock up double digits. I don't think they're wrong.
The same cash flow statement that shows the burn also shows that the operations funding it have rarely looked stronger. And the segment the money is flowing into is accelerating.
Image source: The Motley Fool.
Where the cash went The burn isn't coming from the business. Amazon's operating cash flow rose 33% year over year to $161.4 billion for the trailing 12 months.
What changed is the spending. Purchases of property and equipment, net of proceeds, totaled $169 billion over the same period, up 64% year over year. In the second quarter alone, capital spending reached $54.2 billion, compared with $32.2 billion in the year-ago quarter.
The company said in its earnings release that the increase mostly reflects its investments in artificial intelligence (AI).
And the plan is getting bigger. CEO Andy Jassy said on the earnings call that the company now expects about $220 billion of capital spending in 2026, up from the roughly $200 billion it projected earlier in the year, pointing to rising memory costs.
And the trend has been building for a while. Amazon's trailing-12-month free cash flow has now declined for six straight quarters, stepping down from a peak above $38 billion in late 2024 to this week's negative figure. Operating cash flow grew year over year in every one of those quarters. In other words, the business kept producing more cash, and the build-out simply grew faster.
Importantly, the spending isn't happening at a struggling company. Net sales rose 20% year over year to $200.6 billion in the second quarter, up from 13% growth in the year-ago period. The growth was broad, too. North America sales rose 16%, international sales rose 15%, and Amazon Web Services (AWS) revenue jumped 37%.
What the spending is building AWS is where the payoff shows up most visibly. The cloud computing segment's 37% year-over-year growth, to $42.2 billion, was its fastest in 18 quarters and its fifth straight quarter of acceleration, up from 17% growth in the year-ago period.
Jassy said in the release that "AWS is booming," noting that the company's AI and chips businesses "each eclipsed run rates of more than $25 billion."
The growth is getting more profitable, too. AWS operating income rose about 64% year over year to $16.6 billion, and the segment's operating margin expanded to 39.4% from 32.9% a year ago. AWS produced about 21% of Amazon's net sales in the quarter but roughly 60% of its $27.5 billion in total operating income, which itself grew 43%. That mix is why I think the market was willing to look straight past the cash flow line.
However, investors shouldn't read too much into Amazon's reported net income of $62.6 billion, or $5.75 per share. That figure includes $53.4 billion of non-operating income, primarily from the company's investments in AI company Anthropic.
It's a markup on an investment, not cash from selling things. The profit engine to watch is operating income.
Today's Change
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At about $271, the stock trades at about 27 times forward earnings estimates. For a company growing revenue 20% year over year with operating income up 43%, that's arguably a reasonable price -- not cheap, but far from egregious.
Sure, guidance implies slower growth in the third quarter, with net sales of $197 billion to $202 billion, up 9% to 12% year over year. But the company said the timing of Prime Day shaved nearly 4 percentage points off that comparison. And its operating income guidance of $22.5 billion to $26.5 billion compares with $17.4 billion a year earlier.
Ultimately, the market is paying for AWS, and AWS keeps earning it. I like the stock, even after a double-digit pop.
Of course, the math can turn. If AWS's acceleration stalls while capital spending keeps climbing, the negative free cash flow could start to matter a lot more, and I'd rethink my position. The spending may also stay elevated longer than investors expect. But those are risks to watch, not reasons to sell.
Amazon čelí žalobě spotřebitelů kvůli údajnému klamání o udržitelnosti mořských plodů prodávaných na platformě. Žaloba míří na tvrzení jako „dolphin safe“ a „sustainable“ u tuňáka, lososa i dalších produktů.
Amazon logo outside an Amazon warehouse in Manchester, Britain, October 28, 2025. REUTERS/Phil Noble/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesLawsuit challenges claims such as 'dolphin safe,' 'sustainable,' 'wild caught'Amazon allegedly misled consumers into buying or overpaying for tuna, salmonJuly 31 (Reuters) - Amazon.com (AMZN.O), opens new tab was sued on Friday by consumers who accused the retailer of misrepresenting the environmental benefits of seafood sold on its platform, a practice known as greenwashing.
In a proposed class action in Seattle federal court, consumers said labels containing phrases such as "dolphin safe," "responsibly sourced," "sustainable," "wild caught" and "MSC Certified Sustainable Seafood” misled them into believing Amazon's seafood sourcing causes minimal harm to oceans and the environment.
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The consumers called such representations unsubstantiated or materially false because most fishing vessels are not publicly tracked, and some vessels obscure their whereabouts by disabling electronic devices known as transponders. They also said at least one-fifth of imported wild-caught seafood is not responsibly or sustainably sourced.
"Amazon nevertheless markets the greenwashed seafood products using broad sustainability messaging without providing disclosures necessary to prevent consumer deception," the complaint said.
The Seattle-based company is the second-largest U.S. grocer with more than $150 billion of gross sales in 2025, Chief Executive Andy Jassy said on an April 29 conference call with analysts.
Amazon and lawyers who represent it in other consumer class actions did not immediately respond to requests for comment.
The company faces frequent lawsuits over products sold on its platform, including by outside sellers.
BUMBLE BEE, CHICKEN OF THE SEA, STARKISTThe lawsuit targets dozens of tuna, salmon and other seafood products under brands including Bumble Bee, Chicken of the Sea, StarKist and Amazon's own 365 by Whole Foods Market.
Plaintiffs led by Madeleine Rogow of Los Angeles and Adam Sorkin of Chicago said they would not have bought or would have paid less for their seafood had Amazon disclosed its "true sustainable nature."
The lawsuit seeks compensatory damages, punitive damages and restitution for people in the United States for Amazon's alleged violations of Washington consumer protection laws.
The respective parents of Bumble Bee, Chicken of the Sea and StarKist — Taiwan's FCF, Thai Union Group (TU.BK), opens new tab and South Korea's Dongwon Industries (006040.KS), opens new tab — are not defendants in Friday's lawsuit.
Reporting by Jonathan Stempel in New York; editing by David Gaffen
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Amazon uzavřel investici 50 miliard USD do OpenAI, kterou obě firmy oznámily v únoru. AWS se má stát exkluzivním třetím cloudovým poskytovatelem pro program OpenAI Frontier.
Amazon completed a $50 billion investment in OpenAI that the two companies announced in February.
Amazon said in a Friday (July 31) filing with the Securities and Exchange Commission that after entering into the agreement and investing $15 billion during the first quarter, it invested another $13.7 billion in the second quarter and the remaining $21.3 billion of its commitment sometime after June 30.
OpenAI announced Feb. 27 that it raised new funding that included $50 billion from Amazon. The company said that as part of the deal, Amazon Web Services (AWS) would become the exclusive third-party cloud provider for OpenAI’s Frontier program and OpenAI would expand prior infrastructure agreements with AWS that could total $100 billion over eight years.
In its own Feb. 27 announcement of its investment in OpenAI, Amazon said the $50 billion investment would start with an initial $15 billion, which would be followed by another $35 billion within months “when certain conditions are met.”
The Information reported in February that those conditions could include whether OpenAI goes public or if it achieves artificial general intelligence (AGI), a term for AI that functions at the same level as humans.
In a Friday report that flagged Amazon’s SEC filing saying it completed the investment, The Information noted that OpenAI has not gone public and said that Amazon did not specify why it made the remaining investment.
It was reported Wednesday (July 29) that OpenAI’s flagship product, ChatGPT, is approaching 1 billion weekly active users. While this milestone came seven months later than the AI startup had initially projected, it made ChatGPT one of the fastest-growing apps in the history of the internet, as it achieved this scale in under four years.
On Thursday (July 30), OpenAI cut the price of two of its models and accelerated the performance of a third model while leaving its price unchanged. The company said that it made these changes to improve the models’ performance per dollar across enterprise workloads.
“We are building a resilient infrastructure portfolio and matching each workload to the systems best suited to run it,” OpenAI said in a blog post. “That approach supports both ends of the price-performance curve.”
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Alphabet a Amazon ukázaly, že jejich vlastní čipy jsou reálnou alternativou k Nvidii. Google Cloud díky TPUs zvedl provozní marži na 35,6 % a AWS díky Trainium a Gravitonu rostl o 37 %.
Alphabet (NASDAQ: GOOGL | GOOGL Price Prediction) and Amazon (NASDAQ: AMZN) posted Q2 FY2026 results built around the same idea: their custom chips are now real Nvidia alternatives. Google leaned on TPUs powering a 82% Cloud surge. Amazon leaned on Trainium and Graviton driving 37% AWS growth, the fastest in 18 quarters. Two silicon playbooks, two very different customer bases.
TPUs Carry Google Cloud. Trainium Carries AWS. Google Cloud hit $24.77 billion in Q2, with operating margin jumping to 35.6% from 20.7%. That margin lift is the TPU story in one number: owning the silicon means owning the cost curve. Sundar Pichai told investors Google now offers “the industry’s broadest range of accelerators from Google and NVIDIA”, and notably began recognizing revenue from TPU system sales delivered into customer data centers for the first time.
Amazon went the other way. AWS reached $42.23 billion at a 39.4% operating margin, and Andy Jassy said “our AI and Chips businesses each eclipsed run rates of more than $25 billion” with triple-digit growth. Graviton5 shipped with up to 25% better compute performance than Graviton4, and Trainium capacity is being leased in bulk to Anthropic and OpenAI.
Cost Leader vs. Volume Leader Lens Alphabet Amazon Silicon TPU, Axion CPU Trainium, Graviton, Nitro Primary customer Internal Gemini + Cloud enterprises External AI labs on AWS 2026 CapEx guide $195B to $205B ~$200B Cloud backlog $514B Not disclosed Google’s edge is efficiency. Pichai flagged that Chrome engineers are “on track to accelerate delivery by eight times” using their own models on their own chips. Amazon’s edge is distribution. Bedrock now hosts Claude Opus 5, GPT-5.6, Gemma 4 and Grok 4.3, and customers spent more on Bedrock in Q2 than in all prior quarters combined. One monetizes silicon through margin. The other monetizes it through rented capacity.
The Next Test Is Free Cash Flow Both bets are expensive. Alphabet burned $44.92 billion of CapEx in Q2 and posted negative $5.86 billion of free cash flow, with the buyback suspended. Amazon spent $54.21 billion and TTM free cash flow turned negative at $7.6 billion. I want to see TPU external revenue ramp in 2027, and I want Trainium bookings from OpenAI and Anthropic to translate into AWS margin, not just top line.
Why I Lean Toward Google for Silicon Efficiency, Amazon for Silicon Distribution If you want the cheapest tokens in the industry, Google’s TPU stack looks like the better long-term asset. Cloud margin nearly doubled year over year, and shares rose 5.03% in the past week as investors digested the raise. If you want the widest customer roster leasing custom chips, Amazon wins. AWS jumped 3.9% on earnings day, and the Anthropic and OpenAI Trainium commitments give it a commercial moat Google does not have yet. For investors weighing exposure, the trade-off is efficiency versus distribution, and free cash flow recovery by mid-2027 will be the key checkpoint for both names.
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ToplineJeff Bezos on Friday became the world’s third-richest person once again, reclaiming the ranking from Google co-founder Sergey Brin as Amazon’s stock accelerated at its fastest pace in four years, following a hotter-than-expected earnings report.
A better-than-expected jump in cloud revenue boosted Amazon’s stock.
Getty Images
Key FactsShares of Amazon surged about 14% shortly after trading opened on Friday, pacing the stock’s largest single-day gain since April 24, 2015 (14.1%).
That burst followed Amazon’s quarterly earnings on Thursday, in which the firm reported $206.6 billion in revenue boosted by a 37% year-over-year surge in cloud sales to $42.2 billion, exceeding Wall Street’s estimates of $197 billion and $40.5 billion, respectively, according to FactSet.
Amazon even raised its spending forecast this year to $220 billion, up from $200 billion, as CEO Andy Jassy said a majority of Amazon’s capital expenditures would go toward matching demand for AI, noting the firm was “unusually well-positioned for this AI inflection.”
Tech firms have been increasingly scrutinized as they raise their projected spending to meet demand for AI, but Forrester analyst Tracy Woo wrote in a note Thursday that Amazon’s cloud sales growth was a “clear indicator” that its investments are “meeting market demand rather than outpacing it.”
Forbes ValuationSurging Amazon shares added $25 billion to Bezos’ net worth, estimated at $271.5 billion as of Friday morning. That ranks the Amazon founder as the world’s third-richest person between Google co-founders Larry Page ($279.3 billion) and Brin ($257.6 billion).
tangentApple shares plunged 9% after the firm issued weaker-than-expected guidance for its current quarter, citing “supply constraints” as it now anticipates revenue growth between 9% and 11%, below estimates of 12%. Apple CEO Tim Cook, who spoke in his last earnings call at the helm of the firm, said Apple expects to “pay even higher memory costs” amid a global memory shortage. “If you look beyond September, we see the market pricing for memory continuing to increase, which could drive an increasing impact on our business,” Cook said.
key backgroundBezos and Brin have swapped spots among the world’s wealthiest people multiple times in recent weeks, as investors weigh incoming earnings reports and any signs of weakness in the global AI market. Most of the focus has centered on AI strategy from mega-cap firms, like Amazon, as they navigate an accelerating market and a shrinking memory trade. Earlier this week, Meta shares tanked while Microsoft rallied 15%, as traders took sides on either firm’s approach to their AI products.
further readingForbesSergey Brin Rises To 3rd Richest—Despite Google Stock PlungeBy Mary Whitfill Roeloffs
Financiere des Professionnels Fonds d investissement inc. grew its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 64.6% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 142,478 shares of the e-commerce giant’s stock after buying an additional 55,938 shares during the quarter. Amazon.com accounts for approximately 1.7% of Financiere des Professionnels Fonds d investissement inc.’s portfolio, making the stock its 10th biggest position. Financiere des Professionnels Fonds d investissement inc.’s holdings in Amazon.com were worth $29,674,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also made changes to their positions in the company. Norges Bank acquired a new position in Amazon.com during the 4th quarter worth approximately $32,868,735,000. Auto Owners Insurance Co raised its holdings in shares of Amazon.com by 27,376.7% in the 4th quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant’s stock valued at $2,272,397,000 after purchasing an additional 98,090,585 shares in the last quarter. J. Stern & Co. LLP raised its holdings in shares of Amazon.com by 20,598.0% in the 4th quarter. J. Stern & Co. LLP now owns 87,982,814 shares of the e-commerce giant’s stock valued at $20,308,193,000 after purchasing an additional 87,557,736 shares in the last quarter. Nuveen LLC purchased a new stake in shares of Amazon.com during the 1st quarter worth $11,674,091,000. Finally, Cardano Risk Management B.V. grew its stake in shares of Amazon.com by 879.4% during the fourth quarter. Cardano Risk Management B.V. now owns 27,862,400 shares of the e-commerce giant’s stock worth $6,431,199,000 after purchasing an additional 25,017,588 shares in the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.
Insider Buying and Selling In other news, SVP David Zapolsky sold 9,270 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $268.53, for a total value of $2,489,273.10. Following the completion of the sale, the senior vice president directly owned 41,190 shares of the company’s stock, valued at approximately $11,060,750.70. This represents a 18.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew R. Jassy sold 20,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $263.42, for a total transaction of $5,268,400.00. Following the transaction, the chief executive officer owned 2,205,766 shares in the company, valued at approximately $581,042,879.72. This trade represents a 0.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 135,719 shares of company stock valued at $36,438,002 in the last 90 days. Company insiders own 8.90% of the company’s stock.
Amazon.com Stock Up 3.9% AMZN opened at $235.50 on Friday. Amazon.com, Inc. has a one year low of $196.00 and a one year high of $278.56. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18. The stock has a market capitalization of $2.53 trillion, a P/E ratio of 28.17, a price-to-earnings-growth ratio of 1.70 and a beta of 1.46. The business’s 50-day simple moving average is $245.59 and its 200-day simple moving average is $235.97.
Amazon.com (NASDAQ:AMZN – Get Free Report) last announced its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. The firm had revenue of $200.61 billion during the quarter, compared to analysts’ expectations of $197.03 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The business’s revenue was up 19.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.68 EPS. Analysts anticipate that Amazon.com, Inc. will post 7.76 EPS for the current year.
Analysts Set New Price Targets AMZN has been the topic of a number of analyst reports. Susquehanna restated a “positive” rating and issued a $325.00 price target (up from $300.00) on shares of Amazon.com in a research note on Thursday, April 30th. Wolfe Research reiterated an “outperform” rating and issued a $320.00 price objective (up from $245.00) on shares of Amazon.com in a report on Thursday, April 30th. Sanford C. Bernstein reissued an “outperform” rating and set a $315.00 target price (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. Morgan Stanley boosted their target price on Amazon.com from $300.00 to $330.00 and gave the stock an “overweight” rating in a research note on Thursday, April 30th. Finally, William Blair reiterated an “outperform” rating on shares of Amazon.com in a research note on Thursday, April 9th. Fifty-seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $313.43.
Read Our Latest Research Report on AMZN
More Amazon.com News Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS growth reaccelerated sharply: Amazon Web Services revenue rose 37% year over year—the fastest growth in several years—beating expectations as enterprise AI spending increased. New arrangements with Meta and OpenAI further support demand for Amazon’s cloud infrastructure. Amazon’s AWS posts fastest growth since 2021 Positive Sentiment: Amazon delivered a broad earnings beat: Second-quarter revenue increased approximately 20% to $200.6 billion, surpassing the $197.0 billion consensus estimate, while EPS of $5.75 exceeded expectations of $1.82. Operating income reached $27.5 billion, and AWS operating profit was approximately $16.6 billion. Amazon.com Announces Second Quarter Results Positive Sentiment: Advertising and retail added momentum: Advertising revenue climbed 26% to nearly $20 billion, while Prime Day activity supported the North American e-commerce business. Amazon also said a $600 million tariff refund will be partly passed on to customers. Amazon Thrives On Big Q2 Positive Sentiment: AI strategy is increasingly focused on monetization: Coverage suggests Amazon is emphasizing AWS infrastructure, partnerships and customer access rather than competing exclusively to build the industry’s top proprietary model. This could improve returns on AI spending and reduce the cost of a frontier-model race. Amazon is proving you don’t need the best model Neutral Sentiment: Amazon’s Anthropic investment produced a substantial non-operating gain, boosting reported profitability, but the benefit may be volatile and does not represent recurring operating earnings. Negative Sentiment: Spending and guidance remain investor concerns: Amazon’s planned roughly $200 billion of 2026 capital expenditures is pressuring free cash flow, while its third-quarter revenue outlook of $197 billion to $202 billion is below the approximately $204.6 billion analyst consensus. Reports of costly AI deployment errors add to execution risk. Amazon Contends With Unplanned Overspending on AI Amazon.com Company Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
See Also Five stocks we like better than Amazon.com Microsoft Just Flipped the AI Spending Narrative Overnight Qualcomm’s Turnaround Is Working, So Why Is Wall Street Selling? Meta’s Earnings Show Why Wall Street Is Losing Patience With AI Spending Can Starbucks Keep This Turnaround Going? The Latest Results Say Yes Want to see what other hedge funds are holding AMZN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amazon.com, Inc. (NASDAQ:AMZN – Free Report).
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Gryphon Financial Partners LLC grew its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 7.5% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 73,085 shares of the e-commerce giant’s stock after buying an additional 5,125 shares during the period. Amazon.com makes up approximately 1.6% of Gryphon Financial Partners LLC’s holdings, making the stock its 15th biggest position. Gryphon Financial Partners LLC’s holdings in Amazon.com were worth $15,221,000 as of its most recent SEC filing.
Several other large investors also recently made changes to their positions in the stock. Narwhal Capital Management increased its holdings in shares of Amazon.com by 2.3% in the 4th quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant’s stock worth $49,997,000 after buying an additional 4,854 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position in Amazon.com by 21.0% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant’s stock worth $5,690,463,000 after acquiring an additional 4,275,942 shares in the last quarter. Weaver Capital Management LLC increased its stake in Amazon.com by 13.6% in the fourth quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant’s stock valued at $9,063,000 after acquiring an additional 4,713 shares during the last quarter. Ethos Financial Group LLC raised its position in Amazon.com by 9.6% during the fourth quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant’s stock valued at $8,421,000 after purchasing an additional 3,196 shares in the last quarter. Finally, Culbertson A N & Co. Inc. lifted its stake in Amazon.com by 8.6% during the fourth quarter. Culbertson A N & Co. Inc. now owns 30,444 shares of the e-commerce giant’s stock worth $7,027,000 after purchasing an additional 2,412 shares during the last quarter. Institutional investors own 72.20% of the company’s stock.
Insiders Place Their Bets In other news, CEO Douglas J. Herrington sold 1,000 shares of Amazon.com stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $239.77, for a total value of $239,770.00. Following the sale, the chief executive officer directly owned 484,527 shares in the company, valued at approximately $116,175,038.79. This trade represents a 0.21% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $268.53, for a total value of $2,489,273.10. Following the transaction, the senior vice president owned 41,190 shares of the company’s stock, valued at approximately $11,060,750.70. This represents a 18.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 135,719 shares of company stock worth $36,438,002. Insiders own 8.90% of the company’s stock.
Amazon.com Trading Up 3.9% Shares of AMZN opened at $235.50 on Friday. The stock has a market capitalization of $2.53 trillion, a P/E ratio of 28.17, a PEG ratio of 1.70 and a beta of 1.46. Amazon.com, Inc. has a twelve month low of $196.00 and a twelve month high of $278.56. The company has a quick ratio of 1.01, a current ratio of 1.18 and a debt-to-equity ratio of 0.27. The firm has a fifty day simple moving average of $245.59 and a two-hundred day simple moving average of $235.97.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating the consensus estimate of $1.82 by $3.93. The firm had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The company’s quarterly revenue was up 19.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.68 earnings per share. On average, research analysts anticipate that Amazon.com, Inc. will post 7.76 EPS for the current year.
Key Headlines Impacting Amazon.com Here are the key news stories impacting Amazon.com this week:
Positive Sentiment: AWS growth reaccelerated sharply: Amazon Web Services revenue rose 37% year over year—the fastest growth in several years—beating expectations as enterprise AI spending increased. New arrangements with Meta and OpenAI further support demand for Amazon’s cloud infrastructure. Amazon’s AWS posts fastest growth since 2021 Positive Sentiment: Amazon delivered a broad earnings beat: Second-quarter revenue increased approximately 20% to $200.6 billion, surpassing the $197.0 billion consensus estimate, while EPS of $5.75 exceeded expectations of $1.82. Operating income reached $27.5 billion, and AWS operating profit was approximately $16.6 billion. Amazon.com Announces Second Quarter Results Positive Sentiment: Advertising and retail added momentum: Advertising revenue climbed 26% to nearly $20 billion, while Prime Day activity supported the North American e-commerce business. Amazon also said a $600 million tariff refund will be partly passed on to customers. Amazon Thrives On Big Q2 Positive Sentiment: AI strategy is increasingly focused on monetization: Coverage suggests Amazon is emphasizing AWS infrastructure, partnerships and customer access rather than competing exclusively to build the industry’s top proprietary model. This could improve returns on AI spending and reduce the cost of a frontier-model race. Amazon is proving you don’t need the best model Neutral Sentiment: Amazon’s Anthropic investment produced a substantial non-operating gain, boosting reported profitability, but the benefit may be volatile and does not represent recurring operating earnings. Negative Sentiment: Spending and guidance remain investor concerns: Amazon’s planned roughly $200 billion of 2026 capital expenditures is pressuring free cash flow, while its third-quarter revenue outlook of $197 billion to $202 billion is below the approximately $204.6 billion analyst consensus. Reports of costly AI deployment errors add to execution risk. Amazon Contends With Unplanned Overspending on AI Analyst Upgrades and Downgrades A number of brokerages recently weighed in on AMZN. KeyCorp set a $335.00 price objective on Amazon.com and gave the company an “overweight” rating in a report on Thursday, July 16th. Stifel Nicolaus set a $319.00 price target on shares of Amazon.com and gave the company a “buy” rating in a research report on Thursday, April 30th. Oppenheimer boosted their price objective on shares of Amazon.com from $275.00 to $320.00 and gave the stock an “outperform” rating in a report on Thursday, April 30th. TD Cowen reaffirmed a “buy” rating and set a $340.00 target price (down from $350.00) on shares of Amazon.com in a report on Wednesday, July 8th. Finally, Scotiabank reissued an “outperform” rating and issued a $325.00 price target (up from $275.00) on shares of Amazon.com in a research note on Thursday, April 30th. Fifty-seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $313.43.
View Our Latest Stock Report on Amazon.com
Amazon.com Company Profile (Free Report)
Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.
Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.
Recommended Stories Five stocks we like better than Amazon.com Microsoft Just Flipped the AI Spending Narrative Overnight Qualcomm’s Turnaround Is Working, So Why Is Wall Street Selling? Meta’s Earnings Show Why Wall Street Is Losing Patience With AI Spending Can Starbucks Keep This Turnaround Going? The Latest Results Say Yes Want to see what other hedge funds are holding AMZN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amazon.com, Inc. (NASDAQ:AMZN – Free Report).
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Amazon po výsledcích hospodaření vyskočil v premarketu o 12 %, protože tržby AWS ve 2. čtvrtletí meziročně vzrostly o 37 %. Apple naopak klesl o 7 % kvůli slabému výhledu pro aktuální čtvrtletí.
Amazon shares surged on Friday while Apple dropped as investors reacted starkly differently to their June quarter earnings reports.
Shares of Amazon were 12% higher in premarket trading, while Apple fell 7%. Amazon was nearly 4% higher at Thursday's close while Apple was down by more than 1%.
Both companies reported their June quarter earnings on Thursday with Amazon impressing the market while Apple disappointed.
Apple's earnings, revenue and iPhone sales were all above market expectations, however the company issued weak guidance for the current quarter, citing "supply constraints." Apple said revenue growth in the current quarter will be between 9% and 11%, missing analysts' expectations for 12% growth, according to LSEG.
The company is grappling with a huge shortage of memory, a key component in its devices, as well as competition for chip manufacturing capacity.
This has led Apple to raise prices on the Mac and iPad, and analysts expect an iPhone price rise to come this year.
Amazon, meanwhile, said revenue at its cloud computing business jumped 37% year-on-year in the second quarter, marking the strongest expansion since 2021. Its Amazon Web Services business is closely watched by the market, as this is where the company books most of its sales related to AI. Investors monitor this unit as an indication of the demand Amazon is seeing for its AI products.
Apple and Amazon shares this year.
Amazon shares surged even as the company forecast its capital expenditures to hit $220 billion this year, up from a prior forecast of $200 billion, as it continues to invest in AI infrastructure.
Investors have been scrutinizing spending from Big Tech on AI as concerns grow that these companies are spending ahead of demand. But Amazon's own cloud growth appeared to justify the company's capex.
AWS's strong growth "is a clear indicator that its infrastructure investments are meeting market demand rather than outpacing it," Tracy Woo, principal analyst at Forrester, said in a note on Thursday.
Amazon's stock has been a laggard in 2026 and is up around 4% year-to-date. Apple meanwhile, has risen 23% across the same period. The iPhone maker is partly seen as an alternative trade to the tech players who have been spending heavily, as Apple has not gone on a huge capex expansion journey.
Investors appear to be picking their AI winners during this earnings season, with the stock price moves of tech giants diverging.
On Thursday, Meta sank 8% while Microsoft rallied 15% as investors took a different view on both companies' AI strategies.
Detail of the Amazon Prime streaming app on the screen of an Apple iPad Mini, taken on October 6, 2021. (Photo by Olly Curtis/Future Publishing)
Future Publishing
There is a lot of discussion in the entertainment industry press that every major major SVOD is likely to add free ad-supported streaming TV (FAST) channels to their platform right alongside their original productions and licensed programs.
The biggest rumors along that line center around Netflix, where stories arguing that FAST channels are on the way to that streamer have circulated for months.
But adding those free, ad-supported channels are no guarantee of success, and the latest example of that is in Germany and Austria, where Prime Video is shutting down its “Prime” FAST channel on August 1st, 15 months after their launch.
Prime was backended by Palo Alto, Calif.-based Wurl, which supports more than 4 billion monthly hours of viewing across hundreds of channels and more than 50 streaming platforms worldwide through cloud-based software and scheduling service.
This is just the latest example of the struggles to launch curated FAST channels designed to blend a linear television experience with original SVOD programming. One of the earliest attempts came from Netflix, which launched a series of curated FAST channels on its platform in France.
While Prime Video might still be working out its long-term strategy for curated FAST channels, it continues to aggressively pursue a much-more lucrative business: Prime Video Channels, which offers Prime members access to third-party streaming services through a unified billing process.
Prime Video just announced that it is adding a number of new third-party streaming services to subscribers in Denmark, Norway, and Switzerland. They include HBO Max, SkyShowtime, Apple TV, MGM+, Lionsgate+, MUBI, Hayu, Crunchyroll, Universal+ and BritBox.
“We are thrilled to bring add-on subscriptions to customers in Denmark, Norway, and Switzerland,” said Elisabetta Carruba, Director, Channels, EMEA. “Customers can now enjoy an unrivalled portfolio of series and movies alongside Prime Originals and Exclusives. This is an important step in our goal of becoming the number 1 entertainment destination for our customers across Europe.”
“Expanding our partnership into Norway and Denmark is an important next step as we bring HBO Max to even more Prime Video customers,” added Qaisar Rafique, EVP, Commercial Development EMEA & APAC, at Warner Bros Discovery. “Following successful launches of HBO Max on Amazon Prime Video in territories including the UK, Germany, Australia, and recently New Zealand, this expansion into new territories helps us scale with trusted partners and make it easier for customers to discover and subscribe to the premium entertainment offered by HBO Max on both Prime Video and HBO Max app and website.”
Amazon oznámil investici 1 mld. USD do AWS Forward Deployed Engineering, nového týmu AI inženýrů, kteří budou u zákazníků nasazovat agentní systémy AI během dnů místo měsíců.
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Amazon launches AWS Forward Deployed Engineering with a $1B investment, making it the hottest new job in tech. Marcin Golba/NurPhoto via Getty Images As AI reshapes the tech workforce, Amazon is making a billion-dollar bet that one engineering job is only becoming more valuable.
The company said on Thursday in its second-quarter earnings report that it will invest $1 billion to build AWS Forward Deployed Engineering, a new team of AI engineers who will work directly inside customer organizations to build and launch agentic AI systems in "days rather than months."
Early customers include the Allen Institute, Cox Automotive, the NBA, the NFL, Ricoh, and Southwest Airlines, Amazon said.
The announcement underscores the rapid rise of the forward-deployed engineer, or FDE, a once-niche role that has become one of the hottest jobs in enterprise AI.
"Forward-deployed engineers, or roles that do the equivalent motion, are about to become one of the most in-demand jobs in tech. And one of the most important functions for AI rollouts," Box CEO Aaron Levie wrote on LinkedIn in May.
The hiring boom backs that up. Business Insider previously reported that job postings for forward-deployed engineers have surged since January 2025, according to Indeed data. Companies including Anthropic, OpenAI, Palantir, Stripe, and Google Cloud have all expanded hiring for the role.
The position, popularized by Palantir, embeds engineers directly with customers to build software tailored to their needs. It sits somewhere between software engineering, consulting, and product deployment.
Kanav Bhatnagar, a senior forward-deployed engineer at Rippling, previously told Business Insider that instead of building products from afar, he works directly with clients and learns how their businesses operate before tailoring AI systems to fit their workflows.
"My primary job is listening to customers and understanding their problems," Bhatnagar said, adding that he spends roughly equal time coding and collaborating with product teams.
That hands-on approach has become increasingly important as companies race to deploy generative AI but struggle to move projects from pilot programs into production.
OpenAI created its own forward-deployed engineering team after realizing customers needed more than access to models. Speaking at the Fortune Brainstorm AI conference last year, international managing director Oliver Jay said the company hired engineers to work directly on customers' largest AI deployments because it was "a really specific way to advance the acceleration of advanced AI into scale production cases."
Job postings on Indeed, analyzed by Business Insider, show that forward-deployed engineering roles typically pay between about $170,000 and $200,000. OpenAI's own job listings, which Business Insider previously reviewed in November 2025, advertise US-based forward-deployed engineering positions paying up to $345,000 in base salary, excluding equity.
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Katherine Li You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Amazon ve čtvrtletí vykázal ostatní příjem před zdaněním ve výši 53,4 miliardy USD, hlavně díky investici do Anthropic. Firma už do ní vložila 13 miliard USD.
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Then-Amazon Web Services CEO Adam Selipsky gestures toward Anthropic CEO Dario Amodei during a conference. Noah Berger/Getty Images for Amazon Web Services Amazon's stake in Anthropic is proving to be a massive boon to the world's largest online retailer.
In its latest quarterly earnings report, Amazon reported non-operating pre-tax other income of $53.4 billion, "primarily from our investment in Anthropic."
According to previous financial filings, Amazon has invested $13 billion in Anthropic with the potential for up to $20 billion more.
In June, Anthropic announced that it confidentially filed for an initial public offering, taking the first step toward a highly anticipated IPO. In late May, Anthropic said that it had completed a Series H funding round that valued the company at $965 billion.
Amazon isn't the only Big Tech name sharing in Anthropic's success.
On Wednesday, Microsoft reported its investment in Anthropic had netted a $3.2 billion gain. Microsoft previously invested $5 billion in Anthropic.
Anthropic has seen its valuation skyrocket as the popularity of its Claude family of models pushes the overall generative AI race.
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Brent D. Griffiths You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Brent Griffiths is a senior reporter at Business Insider who covers AI and tech.Previously, he worked at the Washington Post as a researcher on Power Up and the Finance 202. He started his career at Politico where he worked on the web production team and covered breaking news. His passion for covering politics has only grown since he cut his teeth covering the presidential campaign as a student journalist. He's also contributed to the Almanac of American Politics.
Amazon (AMZN - Free Report) came out with quarterly earnings of $1.88 per share, beating the Zacks Consensus Estimate of $1.83 per share. This compares to earnings of $1.68 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.73%. A quarter ago, it was expected that this online retailer would post earnings of $1.6 per share when it actually produced earnings of $1.56, delivering a surprise of -2.5%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Amazon, which belongs to the Zacks Internet - Commerce industry, posted revenues of $200.61 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.77%. This compares to year-ago revenues of $167.7 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Amazon shares have lost about 1.8% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Amazon?While Amazon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Amazon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.00 on $204.16 billion in revenues for the coming quarter and $8.93 on $826.27 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, MercadoLibre (MELI - Free Report) , is yet to report results for the quarter ended June 2026.
This operator of an online marketplace and payments system in Latin America is expected to post quarterly earnings of $8.69 per share in its upcoming report, which represents a year-over-year change of -15.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
MercadoLibre's revenues are expected to be $9.77 billion, up 43.9% from the year-ago quarter.
Amazon disclosed Thursday that it has received $600 million in tariff refunds after the Supreme Court ruled that many of President Donald Trump's levies were illegal, and it expects to return some of that cash to customers.
"We are participating in the tariff refund process and, as I mentioned earlier, we received approximately $600 million in Q2," Brian Olsavsky, Amazon's finance chief, said on the company's earnings call.
In February, the Supreme Court invalidated Trump's tariffs imposed under the International Emergency Economic Powers Act of 1977, forcing the government to pay back duties to companies that imported goods into the U.S. that were hit by tariffs.
Major companies, including Apple, Walmart, Costco, Home Depot and General Motors, all said they would apply for refunds. Trump told CNBC in April he'd "remember" companies that don't seek refunds, when asked whether companies, including Amazon, might be avoiding doing so because they're worried about offending him.
Apple said Thursday its earnings per share were lifted 5%, or 11 cents, by tariff refunds in the third quarter.
Amazon previously hadn't said whether it intended to apply for the refunds. In May, consumers filed a class action lawsuit in federal court in Seattle, arguing that they were owed refunds for paying tariff-inflated prices, and alleging the company wasn't seeking refunds to "curry favor" with Trump.
Read more CNBC tech newsAmazon posts 'booming' cloud growth, hikes 2026 capex to $220 billionApple earnings: Revenue tops estimates, but supply constraints weigh on guidanceChina's open-weight model lead exposes America's AI blind spotNew details in the OpenAI Hugging Face hack show how far agents will go: 'It's now remarkably easy'Amazon, last April, landed in hot water with the White House after it was reported that the company planned to display the cost of Trump's tariffs next to some products on its site. Trump personally called Amazon founder and executive chairman Jeff Bezos to complain about the plan, NBC News reported.
On Thursday, Olsavsky said Amazon was issued a "limited" refund amount because it worked to order and preposition inventory in anticipation of the tariffs.
"Second, we are not the importer of record for the large majority of items sold in our store," he said.
Many of Amazon's third-party sellers who import their goods from overseas were forced to raise prices due to the levies, and have since applied to receive tariff refunds. Outside sellers account for more than 60% of goods sold on Amazon's marketplace.
Olsavsky said some of the company's tariff refunds will be returned to shoppers.
"We've identified a limited set of circumstances where we can trace that we've passed specific import charges onto customers, and when we receive those refunds, we will proactively contact affected customers and automatically issue refunds to them," Olsavsky said. "Otherwise, like other large retailers, we'll utilize refunds to continue to invest in low prices for customers."
Amazon ve výsledcích hospodaření ukázal 37% růst tržeb AWS a CEO Andy Jassy řekl, že k úspěchu v AI není potřeba mít nejlepší model. Firma sází na Bedrock a přístup k více předním modelům.
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Amazon CEO Andy Jassy. Andrej Sokolow/picture alliance via Getty Images Amazon's earnings on Thursday highlighted a surprising idea gaining traction across Silicon Valley: You don't need the best models to win in AI.
The company reported blockbuster results, including a 37% jump in revenue from Amazon Web Services. Those gains came from the cloud giant running many different AI models from leading providers such as Anthropic and OpenAI.
In contrast, Amazon's efforts to build its own models are in somewhat of a mess, as Business Insider reported earlier this week.
On Thursday, Amazon CEO Andy Jassy suggested this isn't a problem. During a call with analysts he said there won't be a single AI model that dominates the industry.
Instead, Jassy explained, customers increasingly want to use multiple leading models, a trend that's helped fuel the rapid growth of Amazon Bedrock, the company's platform for accessing foundation models.
"AWS and Amazon can have a wildly successful business without its own frontier model," Jassy said. "There is not going to be one model to rule the world."
This is a big change from what's been guiding much of the AI market since it exploded in 2022 on the back of ChatGPT. Companies have raced to develop the most powerful models, spending huge sums of money on training and other expensive development techniques.
Now, though, the race has evolved to be less about raw performance and more about building and running efficient models, so-called intelligence per dollar. This potentially suits Amazon more than some other AI rivals.
Amazon has never prioritized its own models. It did develop in-house offerings via the Nova range of models, but they struggled to come close to frontier.
More recently, the company has been overhauling its AI strategy, winding down most of the existing Nova line while shifting resources toward a new frontier-model initiative, Business Insider reported earlier this week.
Jassy's remarks suggest the company's long-term strategy is not to rely exclusively on its own models, but to make AWS the platform where customers can access the industry's leading AI systems — whether to not those come from Amazon.
Rather than trying to win solely on model performance, Amazon has focused on making Bedrock the centerpiece of it AI strategy. Last year, Jassy said AWS was "building Bedrock to be the biggest inference engine in the world" and predicted the service could eventually rival EC2, AWS's flagship cloud computing business.
During Thursday's call, Jassy said companies building AI applications want access to a wide range of models because different systems will surpass one another over time and excel at different tasks. That dynamic, he said, gives Bedrock a competitive advantage.
"If you're a company that's building important AI applications, you want to make sure that you have the ability to use all the available models," Jassy said. "They're going to each leapfrog each other at different times."
At the same time, Jassy made clear Amazon remains committed to developing its own AI models.
He said having a leading model would give the company greater control over costs for both its own consumer applications and AWS customers, while allowing Amazon to prioritize features important to customers and move faster without relying on outside providers.
Alexa, for example, has been reducing its reliance on Anthropic's costly models in favor of Amazon's own AI models to lower costs, Business Insider previously reported.
Jassy predicted that within the next few years there will be "at least a half dozen models that are comparably good to each other."
"They'll all be on Bedrock," he said, "and one of them will be ours."
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Eugene Kim You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail operations, AWS, Alexa, and its secretive internal work culture.Previously, he worked at CNBC, Fortune Magazine Korea, and Japan's Yomiuri Shimbun. He holds degrees from NYU and Columbia University’s Graduate School of Journalism.In 2022, Eugene broke a story uncovering Amazon’s practice of deceptively enrolling customers in Prime and deliberately making cancellation difficult. A year later, the Federal Trade Commission sued the company, citing his reporting. That case culminated in a record $2.5 billion settlement in 2025.His reporting has earned multiple honors, including the SF Press Club’s Bay Area Journalism Award and SPJ NorCal’s Excellence in Journalism Award.Eugene lives in the Bay Area. Contact him via email at [email protected], or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely. ExpertiseAmazon, Jeff Bezos, Andy Jassy, e-commerce, and cloud computing.Popular ArticlesAmazon:Internal Amazon emails give an exclusive look at how CEO Andy Jassy has started to run the company, with obsessive attention to the retail business and what some employees feel is micromanagingAndy Jassy will be the next CEO of Amazon. Insiders dish on what it's like to work for Jeff Bezos' successor, who built AWS into a $40 billion business.Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.Inside Amazon's flailing brick-and-mortar ambitions: missed projections, pressure to cut costs, and a war with Whole FoodsInside Amazon's complex employee-review system, where workers feel left in the dark and managers expect to give 5% of reports bad reviewsAfter 28 years, 'Day 2' finally arrives at AmazonAWS, Alexa, healthcare:Inside Amazon's struggle to break into the lucrative market for SaaS business applications, including an internal pitch to buy $38 billion HubSpotInside Amazon's struggle to crack Nvidia's AI-chip dominanceAmazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortagesAmazon is gutting its voice assistant, Alexa. Employees describe a division in crisis and huge losses on 'a wasted opportunity.'Amazon is working on a new 'Remarkable Alexa,' but internal politics and technical issues plague the projectAmazon projected huge losses from its healthcare business in 2024, but strong sales growth, internal document reveals
Amazon těží z AI spíš jako poskytovatel infrastruktury než jako tvůrce modelu. AWS chce udržet AI workloady ve svém cloudu, i když vítězem závodu bude někdo jiný. Amazon plánuje v roce 2026 investovat 200 miliard dolarů.
When investors talk about the artificial intelligence race, the conversation usually revolves around one question: Who will build the best AI model?
Will it be OpenAI? Alphabet? Anthropic? Meta?
That's certainly an important question. But it may not be the most profitable one for investors. A better question is this: Who stands to make the most money as AI becomes ubiquitous, regardless of which model ultimately wins?
To answer the question, here's one company that deserves our attention: Amazon (AMZN +3.91%).
Image source: Getty Images.
Amazon is selling the picks and shovels History offers useful lessons for investors. During a gold rush, some prospectors strike it rich, but most leave empty-handed. Still, businesses that consistently make money during the rush are often the ones selling the picks, shovels, and supplies.
Today's AI boom looks remarkably similar. Companies are racing to build increasingly capable AI models, but each one requires enormous computing power, storage, networking, and software infrastructure. Whether a business chooses OpenAI, Anthropic, Meta, or another provider, someone still has to run those workloads.
That's where Amazon Web Services (AWS) comes in. AWS is already one of the world's largest cloud infrastructure providers. As enterprises deploy more AI applications, demand for computing resources should continue rising. Every new AI-powered product, AI agent, recommendation engine, or enterprise assistant represents another workload that needs infrastructure.
Amazon doesn't have to predict which model will dominate. It simply needs businesses to keep adopting AI.
Today's Change
(
3.91
%) $
8.85
Current Price
$
235.50
AI strengthens Amazon's entire ecosystem The good news for Amazon is that the story doesn't end with Amazon Web Services (AWS). Unlike many AI-focused companies, Amazon owns an ecosystem where AI can improve multiple businesses simultaneously.
In e-commerce, AI can generate more relevant product recommendations, improve inventory planning, forecast demand, and optimize delivery routes. For advertisers, AI can deliver better targeting and more efficient campaigns, helping brands connect with customers who are ready to buy.
Within AWS, Amazon is developing custom AI chips, such as Trainium and Inferentia, to reduce the cost of training and running AI models. Lower costs, in turn, could make AI adoption more attractive to enterprise customers and strengthen AWS's competitive position.
Each small improvement reinforces another part of Amazon's business. Better recommendations increase sales. Higher sales attract more merchants. More merchants attract more advertisers. More business activity generates additional demand for cloud services and data processing.
In other words, AI doesn't need to create a new business for Amazon. It's making an already powerful ecosystem even stronger.
Amazon probably doesn't even need to win the AI race This may be Amazon's biggest strategic advantage, yet it's underappreciated.
Microsoft wants enterprises to embrace Copilot. Alphabet wants developers and consumers to use Google Gemini. OpenAI wants ChatGPT to become the default AI assistant.
Those companies have a greater incentive to persuade customers that their AI model is the best. Amazon has a different objective.
It wants businesses to build, deploy, and scale AI applications on AWS. Whether those applications use Amazon's own models, Anthropic's Claude, or another foundation model is often less important than keeping those workloads inside Amazon's cloud ecosystem.
In other words, Amazon is positioning itself as the platform that enables AI rather than the destination where users consume it. If AI adoption accelerates across industries, Amazon could benefit even if another company builds the world's leading AI model.
But there are still risks While we have generally explored the upsides so far, that doesn't mean Amazon is guaranteed to win.
Building AI infrastructure requires enormous capital investment -- Amazon plans to invest $200 billion in 2026 -- and those costs could pressure margins in the near term. Moreover, competition from Microsoft, Alphabet, and other cloud providers remains intense, so Amazon will still need to fight for its rightful market share.
In short, execution will still matter.
What does it mean for investors? The biggest winners of a technological revolution aren't always the companies with the flashiest products. Sometimes they're the businesses that make the entire ecosystem possible, and that's the opportunity Amazon is pursuing.
While much of the market debates which chatbot or AI model will come out on top, Amazon is quietly building the infrastructure and business ecosystem that can benefit from almost every AI breakthrough.
And if AI truly becomes as transformative as many expect, Amazon's best days may still lie ahead
Amazon ve 2. čtvrtletí zvýšil tržby o 20 % na 200,6 mld. USD a provozní zisk vzrostl o 43 % na 27,5 mld. USD. Tržby AWS stouply o 37 % na 42,2 mld. USD.
Net sales increased 20% year-over-year
Operating income was $27.5 billion, up 43% year-over-year
AWS net sales increased 37%—its fastest growth in 18 quarters—to a $169 billion annualized revenue run rate
SEATTLE--(BUSINESS WIRE)--Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its second quarter ended June 30, 2026.
Net sales increased 20% to $200.6 billion in the second quarter, compared with $167.7 billion in second quarter 2025. Excluding the $0.1 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 20% compared with second quarter 2025. North America segment sales increased 16% year-over-year to $116.2 billion. International segment sales increased 15% year-over-year to $42.2 billion. AWS segment sales increased 37% year-over-year to $42.2 billion. Operating income increased to $27.5 billion in the second quarter, compared with $19.2 billion in second quarter 2025. North America segment operating income was $9.1 billion, compared with $7.5 billion in second quarter 2025. International segment operating income was $1.7 billion, compared with $1.5 billion in second quarter 2025. AWS segment operating income was $16.6 billion, compared with $10.2 billion in second quarter 2025. Net income increased to $62.6 billion in the second quarter, or $5.75 per diluted share, compared with $18.2 billion, or $1.68 per diluted share, in second quarter 2025. Second quarter 2026 net income includes non-operating pre-tax other income of $53.4 billion, primarily from our investments in Anthropic. Operating cash flow increased 33% to $161.4 billion for the trailing twelve months, compared with $121.1 billion for the trailing twelve months ended June 30, 2025. Free cash flow decreased to an outflow of $7.6 billion for the trailing twelve months, driven primarily by a year-over-year increase of $66.1 billion in purchases of property and equipment, net of proceeds from sales and incentives. This increase primarily reflects investments in artificial intelligence. This compares to free cash flow inflow of $18.2 billion for the trailing twelve months ended June 30, 2025. “AWS is booming, growing 36.7% year-over-year in Q2—our fastest growth in 18 quarters—and our AI and Chips businesses each eclipsed run rates of more than $25 billion,” said Andy Jassy, President and CEO, Amazon. “In Stores, we again set record delivery speeds for Prime members in the first half of the year—over 40% more items delivered same-day or overnight, with Grocery and Everyday Essentials growing meaningfully faster than the rest of the business. And, Advertising had another strong quarter with 26% year-over-year growth. There’s a lot to be excited about, and we have much more coming for customers in the second half of the year and beyond.”
Some other highlights since the company’s last earnings announcement include that Amazon:
Exceeded a $25 billion annual revenue run rate for AWS’s AI business, growing triple-digit percentages year-over-year. Exceeded a $25 billion annual revenue run rate for its chips business, growing triple-digit percentages year-over-year. Continued gaining momentum with Trainium, with the two leading AI labs in the world, Anthropic and OpenAI, making multi-year, multi-gigawatt commitments; an increasing number of AI start-ups adopting Trainium, including unicorns like NEURA Robotics and Odyssey; and commitments from other startups like TwelveLabs, Decart, Poolside, Karakuri, Inc., Metagenomi Therapeutics, Inc., NetoAI, and Splash Music, as well as larger companies like Uber and Pinterest. Released Graviton5 into general availability. Graviton delivers up to 30 to 40% better price-performance than comparable instances, and Graviton5 delivers up to 25% better compute performance than Graviton4. Graviton is used by 98% of the top 1,000 EC2 customers, revenue commitments have increased nearly 3x quarter-over-quarter, and Graviton5 is growing nearly 2x faster than Graviton4 did. Added 10+ fully managed foundation models to Amazon Bedrock, including OpenAI’s GPT-5.6, Anthropic’s Claude Opus 5, Google DeepMind’s Gemma 4, and SpaceXAI’s Grok 4.3. Amazon Bedrock provides the best selection of leading models, at superior performance, and with the governance and security controls that companies need, and it’s continuing to grow quickly—hundreds of thousands of customers now use Bedrock, more customers were added in the last six months than in the first two years after launch, and customers spent more in Q2 than all prior quarters combined. Previewed AWS Continuum, which discovers, prioritizes, validates, and remediates code vulnerabilities. It starts by ingesting the backlog of vulnerabilities a team already has, and then leverages the new frontier models to run comprehensive scans. Continuum uses agents and each company’s own business context to prioritize what matters, then validates vulnerabilities in a sandbox and recommends the fix. Added new capabilities to Bedrock AgentCore, which provides the building blocks that companies need to quickly and securely deploy and operate agents at scale. New capabilities include Payments (so agents can execute transactions autonomously), Web Search (to ground agents’ knowledge without having to leave AWS), and Harness, which further speeds up how fast customers can stitch together all the infrastructure they need for their agents. Made Amazon Quick—an intelligent AI work companion that helps manage, search, and automate digital workloads across email, calendar, local or cloud files, and custom workflows—even more capable, adding autonomous agents that customers set up in plain language to run continuously in the background and carry out multi-step tasks; a personalized activity feed that pulls email, messages, calendar, and tasks into one prioritized view; and 16 new integrations, including Adobe, Moody’s, and Snowflake. Quick manages across leading SaaS tools like Slack, Salesforce, Jira, Teams, and ServiceNow; enforces a company’s existing access controls; and takes actions like scheduling meetings, drafting and sending email, updating a CRM record, building a dashboard, and more. Made its spec-drive coding agent, Kiro, available on iOS so developers can now kick off a new project, monitor progress, steer an agent, and interact with Kiro sessions from their phone, desktop, command line, and the web. Kiro is up to 50% more cost-effective than alternatives and tripled in usage quarter-over-quarter. Added new capabilities to AWS DevOps Agent, an always-available software operations teammate that helps developers ship software safely and reliably, including Release Management to perform readiness reviews of code changes and autonomously test releases to spot potential issues before they go live. Launched serverless infrastructure for agentic AI that scales on demand, including: Lambda MicroVMs, a new flavor of the popular AWS Lambda serverless compute service that not only offers instant start times with the ability to scale all the way up or down depending on demand, but also now provides a stateful runtime with sessions that can last up to 8 hours—ideal for long-running agent loops, multi-step pipelines, or persistent database engines. Next-generation OpenSearch Serverless, which gives agents fast access to search across massive volumes of data, scales capacity up to 20x faster than the previous generation, and offers up to 60% cost savings versus provisioning for peak. Purpose-built log analytics engine for Amazon OpenSearch Service, designed to keep pace with the vast increase in logs being produced by agentic workloads. It delivers up to 4x better price performance compared to the existing general-purpose engine, up to 2x higher data ingestion on the same hardware, and up to 2x faster analytical queries, while retaining up to 3x more data at the same cost—enabling teams to retain and analyze more observability data without choosing between insight and budget. Announced an investment of $1 billion to create AWS Forward Deployed Engineering, a team of AI engineers embedded directly with customers to co-develop and deploy agentic AI solutions in days rather than months. Early customers include Allen Institute, Cox Automotive, the NBA, the NFL, Ricoh, and Southwest Airlines. Announced general availability of AWS Secret Cloud for Industry, giving defense contractors a faster, more secure path to classified innovation, with Northrop Grumman first to run classified workloads on the platform, and committed up to $1 billion in cloud credits to accelerate U.S. Intelligence Community cloud migration and modernization. Announced its global data centers are over 7x more water-efficient than the industry average. Amazon also reached 75% progress toward its goal to be water positive across global data center operations by 2030, and achieved water-positive status across its direct operations in India ahead of its 2027 target. Announced new AWS agreements with Warner Bros. Discovery, Vodafone, Siemens Energy, Ryanair, Pinterest, Snowflake, Moody’s, Danske Bank, WNBA, Pennymac, Fiserv, WPP Enterprise Solutions, Vonage, Recursive, fal, Chai Discovery, Odyssey, TwelveLabs, Reactor, OpenRouter, Dash0, New York State Office of Information Technology Services, State of Iowa, University of South Florida, and The University of Utah. Continued to expand its ultra-fast delivery service, Amazon Now, which offers delivery in 30 minutes or less on thousands of everyday essentials—adding 80 new cities and towns across the U.S. and several major cities in Egypt. Amazon Now is available in nine countries and over 250 cities and towns globally, and customers love it, with over 80% growth in gross sales and units sold quarter-over-quarter and over 60% more customers served quarter-over-quarter. Added millions of new products to its selection, including over 700,000 from notable brands like ADT Blu, Bobbi Brown, BROWN GIRL Jane, CR7 Underwear, LeGer, Mamonde, OLIVA COSMETICS, Rabanne, and Ted Baker. Brought together Rufus and Alexa+ into Alexa for Shopping, an agentic AI shopping assistant that offers personalized recommendations, product comparisons, price history, and the ability to automate shopping through features like Price Alerts and Auto-Buy. Worldwide customer adoption and engagement accelerated in Q2, with active users close to doubling and interactions up over 5x year-over-year. Launched Amazon Supply Chain Services so any business can move, store, and deliver everything from raw materials to finished products using the same supply chain that supports Amazon, with Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters among the first customers. Reached $60 billion in annualized gross sales for Amazon Business and continued to expand selection—adding nearly 30% more items compared to last year, including Same-Day Delivery of fresh groceries for businesses in 2,300+ U.S. cities and towns. Introduced the next-generation of Proteus, an autonomous robot that assists Amazon fulfillment center employees by moving goods up to 1,300 pounds, reducing heavy lifting and further increasing safety. Using AI, employees can now direct Proteus with plain, conversational language. Grew the number of new customers for Amazon Pharmacy by more than 2x in the first six months of the year, and same-day prescription deliveries nearly 5x. Also saved customers nearly $250 million so far this year in out-of-pocket costs, up more than 400% year-over-year, through manufacturer discounts applied automatically on an expanded selection of widely prescribed medications. Expanded Ads Agent—an AI-powered tool that simplifies planning, launching, and managing advertising campaigns and turns hours of setup and targeting into minutes—to 11 new countries so far this year. Advertisers using Ads Agent see 8% lower cost-per-impression and 6% lower cost-per-acquisition than those that don’t use it. Expanded Alexa+ to Germany, Austria, France, and Brazil, with hundreds of millions of customers now using new Alexa experiences, and that number growing every month. Alexa continues to drive meaningful momentum for the business, including in the U.S., where customers who use Alexa for Shopping spend an average of over 40% more per order than those who don’t, and customers who have tried Alexa+ are signing up for Prime at a nearly 25% higher rate. Drew 36 million viewers globally for the series premiere of Off Campus on Prime Video in its first 12 days, becoming Prime Video’s No. 3 top-viewed series debut ever. Delivered strong viewership for inaugural season of NBA on Prime Video, with a peak of 6.5 million U.S. viewers for Game 7 of the Eastern Conference Semifinals (outperforming Game 7 on broadcast in 2025). In Europe, viewership of the NBA more than doubled year-over-year on Prime Video, with the highest average viewership on record. Averaged 2.3 million viewers during the second season of NASCAR on Prime Video and attracted the youngest audience the last two years among NASCAR broadcasters since 2017. Completed four additional launches for Amazon Leo, its low Earth orbit satellite network, bringing the total constellation to nearly 400 satellites in orbit—enough to begin initial satellite internet service this year. Received approval from the National Highway Traffic Safety Administration (Part 555 Exemption) for Zoox to charge for rides—the first purpose-built robotaxi to receive this exemption—paving the way for Zoox to begin offering paid commercial service to customers. Supported relief efforts following earthquakes in Venezuela with its Amazon Disaster Relief program, donating and delivering more than 650,000 emergency supplies to more than a dozen nonprofits and establishing weekly humanitarian relief flights to Caracas in a first-of-its-kind collaboration with Airlink, the U.S. State Department, and World Food Programme, delivering approximately 120 tons of supplies. Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of July 30, 2026, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed below.
Third Quarter 2026 Guidance
Net sales are expected to be between $197.0 billion and $202.0 billion, or to grow between 9% and 12% compared with third quarter 2025. Excluding the impact of Prime Day in both 2025 and 2026, third quarter 2026 year-over-year growth would be nearly 400 basis points higher. This guidance anticipates an unfavorable impact of approximately 80 basis points from foreign exchange rates. Operating income is expected to be between $22.5 billion and $26.5 billion, compared with $17.4 billion in third quarter 2025. This guidance assumes, among other things, no impact from energy derivative contract remeasurements, and that no additional business acquisitions, restructurings, or legal settlements are concluded. Conference Call Information
A conference call will be webcast live today at 2:00 p.m. PT/5:00 p.m. ET, and will be available for at least three months at amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.
Forward-Looking Statements
These forward-looking statements are inherently difficult to predict. Actual results and outcomes could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, the degree to which the Company enters into, maintains, and develops commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, security incidents, system interruptions, government regulation and taxation, and fraud. In addition, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events may give rise to or amplify many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.
Additional Information
Our investor relations website is amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.
About Amazon
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.
AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
Twelve Months Ended
June 30,
2025
2026
2025
2026
2025
2026
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD
$
69,893
$
104,692
$
82,312
$
90,106
$
71,673
$
61,453
OPERATING ACTIVITIES:
Net income
18,164
62,647
35,291
92,902
70,623
135,281
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other
15,227
19,988
29,489
38,933
58,562
75,200
Stock-based compensation
6,534
6,038
10,223
10,070
20,551
19,314
Non-operating expense (income), net
(1,258
)
(53,381
)
(4,075
)
(69,013
)
(4,702
)
(79,818
)
Deferred income taxes
11
17,691
518
30,489
(2,407
)
41,441
Changes in operating assets and liabilities:
Inventories
(4,054
)
(1,818
)
(5,276
)
(196
)
(5,851
)
2,078
Accounts receivable, net and other
(1,125
)
(8,204
)
122
(13,954
)
(4,602
)
(21,409
)
Other assets
(2,971
)
(4,717
)
(6,373
)
(8,528
)
(15,100
)
(17,787
)
Accounts payable
7,058
9,442
(1,985
)
705
6,264
13,921
Accrued expenses and other
(4,952
)
(2,018
)
(9,013
)
(10,063
)
(4,842
)
(6,069
)
Unearned revenue
(119
)
(281
)
609
74
2,641
(749
)
Net cash provided by (used in) operating activities
32,515
45,387
49,530
71,419
121,137
161,403
INVESTING ACTIVITIES:
Purchases of property and equipment
(32,183
)
(54,208
)
(57,202
)
(98,411
)
(107,656
)
(173,028
)
Proceeds from property and equipment sales and incentives
815
1,132
1,579
2,101
4,703
4,021
Acquisitions, net of cash acquired, non-marketable investments, and other, net
(1,700
)
(24,359
)
(1,652
)
(39,767
)
(4,809
)
(41,956
)
Sales and maturities of marketable securities
11,441
24,196
19,178
41,882
30,924
67,090
Purchases of marketable securities
(17,797
)
(26,006
)
(31,130
)
(49,262
)
(46,731
)
(72,902
)
Net cash provided by (used in) investing activities
(39,424
)
(79,245
)
(69,227
)
(143,457
)
(123,569
)
(216,775
)
FINANCING ACTIVITIES:
Proceeds from short-term debt, and other
2,093
9,368
3,908
15,386
8,187
20,798
Repayments of short-term debt, and other
(1,392
)
(9,573
)
(3,474
)
(15,682
)
(7,901
)
(20,634
)
Proceeds from long-term debt
—
13,557
746
66,998
746
81,925
Repayments of long-term debt
(2,751
)
(2,752
)
(2,751
)
(2,752
)
(7,434
)
(5,022
)
Principal repayments of finance leases
(411
)
(395
)
(821
)
(863
)
(1,556
)
(1,599
)
Principal repayments of financing obligations
(78
)
(59
)
(194
)
(174
)
(694
)
(308
)
Net cash provided by (used in) financing activities
(2,539
)
10,146
(2,586
)
62,913
(8,652
)
75,160
Foreign currency effect on cash, cash equivalents, and restricted cash
1,008
(53
)
1,424
(54
)
864
(314
)
Net increase (decrease) in cash, cash equivalents, and restricted cash
(8,440
)
(23,765
)
(20,859
)
(9,179
)
(10,220
)
19,474
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD
$
61,453
$
80,927
$
61,453
$
80,927
$
61,453
$
80,927
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt, net of capitalized interest
$
523
$
736
$
759
$
1,010
$
1,668
$
1,709
Cash paid for operating leases
3,758
3,489
7,320
7,804
13,485
15,522
Cash paid for interest on finance leases
72
85
143
187
284
339
Cash paid for interest on financing obligations
52
50
107
126
212
215
Cash paid for income taxes, net of refunds
4,761
2,655
5,638
3,978
11,788
6,635
Assets acquired under operating leases
4,621
7,670
8,942
13,909
16,702
24,897
Property and equipment acquired under finance leases, net of remeasurements and modifications
937
563
991
2,128
1,622
4,048
Increase (decrease) in property and equipment acquired but not yet paid
(1,600
)
10,700
1,508
20,620
5,376
29,267
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2026
2025
2026
Net product sales
$
68,246
$
77,602
$
132,216
$
148,906
Net service sales
99,456
123,004
191,153
233,219
Total net sales
167,702
200,606
323,369
382,125
Operating expenses:
Cost of sales
80,809
95,778
157,785
183,241
Fulfillment
25,976
29,633
50,569
56,922
Technology and infrastructure
27,166
33,158
50,160
62,725
Sales and marketing
11,416
11,698
21,179
22,012
General and administrative
2,965
2,788
5,593
5,375
Other operating expense (income), net
199
90
507
537
Total operating expenses
148,531
173,145
285,793
330,812
Operating income
19,171
27,461
37,576
51,313
Interest income
1,085
1,295
2,151
2,430
Interest expense
(516
)
(1,314
)
(1,057
)
(2,114
)
Other income (expense), net
1,117
53,415
3,866
69,062
Total non-operating income
1,686
53,396
4,960
69,378
Income before income taxes
20,857
80,857
42,536
120,691
Provision for income taxes
(2,678
)
(18,199
)
(7,231
)
(27,759
)
Equity-method investment activity, net of tax
(15
)
(11
)
(14
)
(30
)
Net income
$
18,164
$
62,647
$
35,291
$
92,902
Basic earnings per share
$
1.71
$
5.82
$
3.32
$
8.64
Diluted earnings per share
$
1.68
$
5.75
$
3.27
$
8.53
Weighted-average shares used in computation of earnings per share:
Basic
10,637
10,769
10,620
10,756
Diluted
10,806
10,903
10,800
10,889
AMAZON.COM, INC.
Consolidated Statements of Comprehensive Income
(in millions)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2026
2025
2026
Net income
$
18,164
$
62,647
$
35,291
$
92,902
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $(142), $(66), $(208), and $(79)
3,314
(799
)
4,849
(1,563
)
Unrealized gains (losses) on net investment hedging instruments, net of tax of $0, $(69), $0, and $(45)
—
229
—
144
Available-for-sale debt securities:
Change in net unrealized gains (losses), net of tax of $(12), $(13,695), $(23), and $(14,035)
40
41,988
77
42,814
Less: reclassification adjustment for net losses (gains) included in “Other income (expense), net,” net of tax of $5, $0, $814, and $1,142
(17
)
—
(2,471
)
(3,337
)
Net change
23
41,988
(2,394
)
39,477
Other, net of tax of $(1), $1, $0, and $(1)
(3
)
1
(1
)
(1
)
Total other comprehensive income (loss)
3,334
41,419
2,454
38,057
Comprehensive income
$
21,498
$
104,066
$
37,745
$
130,959
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2026
2025
2026
North America
Net sales
$
100,068
$
116,177
$
192,955
$
220,320
Operating expenses
92,551
107,054
179,597
202,930
Operating income
$
7,517
$
9,123
$
13,358
$
17,390
International
Net sales
$
36,761
$
42,197
$
70,274
$
81,986
Operating expenses
35,267
40,480
67,763
78,845
Operating income
$
1,494
$
1,717
$
2,511
$
3,141
AWS
Net sales
$
30,873
$
42,232
$
60,140
$
79,819
Operating expenses
20,713
25,611
38,433
49,037
Operating income
$
10,160
$
16,621
$
21,707
$
30,782
Consolidated
Net sales
$
167,702
$
200,606
$
323,369
$
382,125
Operating expenses
148,531
173,145
285,793
330,812
Operating income
19,171
27,461
37,576
51,313
Total non-operating income
1,686
53,396
4,960
69,378
Provision for income taxes
(2,678
)
(18,199
)
(7,231
)
(27,759
)
Equity-method investment activity, net of tax
(15
)
(11
)
(14
)
(30
)
Net income
$
18,164
$
62,647
$
35,291
$
92,902
Segment Highlights:
Y/Y net sales growth:
North America
11
%
16
%
9
%
14
%
International
16
15
10
17
AWS
17
37
17
33
Consolidated
13
20
11
18
Net sales mix:
North America
60
%
58
%
60
%
58
%
International
22
21
22
21
AWS
18
21
18
21
Consolidated
100
%
100
%
100
%
100
%
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
December 31, 2025
June 30, 2026
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
86,810
$
78,213
Marketable securities
36,219
44,775
Inventories
38,325
38,184
Accounts receivable, net and other
67,729
88,092
Total current assets
229,083
249,264
Property and equipment, net
357,025
446,046
Operating leases
86,054
92,743
Goodwill
23,273
23,504
Other assets
122,607
284,132
Total assets
$
818,042
$
1,095,689
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
121,909
$
147,440
Accrued expenses and other
75,520
73,406
Unearned revenue
20,576
20,428
Total current liabilities
218,005
241,274
Long-term lease liabilities
87,339
94,338
Long-term debt
65,648
128,894
Other long-term liabilities
35,985
79,563
Commitments and contingencies
Stockholders’ equity:
Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding)
—
—
Common stock ($0.01 par value; 100,000 shares authorized; 11,246 and 11,298 shares issued; 10,731 and 10,783 shares outstanding)
112
113
Treasury stock, at cost
(7,837
)
(7,837
)
Additional paid-in capital
140,024
149,619
Accumulated other comprehensive income (loss)
28,230
66,287
Retained earnings
250,536
343,438
Total stockholders’ equity
411,065
551,620
Total liabilities and stockholders’ equity
$
818,042
$
1,095,689
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital media content subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”
(2)
Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”
(3)
Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.
(4)
Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
(5)
Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.
(6)
Includes sales related to various other offerings (such as shipping services, healthcare services, and certain licensing and distribution of video content) and our co-branded credit card agreements.
(7)
Excludes the impact of Whole Foods Market.
Amazon.com, Inc.
Certain Definitions
Customer Accounts
References to customers mean customer accounts established when a customer places an order through one of our stores. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Payments customers, AWS customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period. Seller Accounts
References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period. AWS Customers
References to AWS customers mean unique AWS customer accounts, which are unique customer account IDs that are eligible to use AWS services. This includes AWS accounts in the AWS free tier. Multiple users accessing AWS services via one account ID are counted as a single account. Customers are considered active when they have had AWS usage activity during the preceding one-month period. Units
References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers in our stores as well as Amazon-owned items sold in other stores. Units sold are paid units and do not include units associated with AWS, certain acquisitions, certain subscriptions, rental businesses, or advertising businesses, or Amazon gift cards. More News From Amazon.com, Inc.
Amazon omezuje vývoj několika svých AI modelů Nova, včetně Premier, Omni, Reel a Canvas, a přesouvá zdroje do cloudu, reklamy, logistiky a retailu. V soutěži o AI se tak soustředí spíš na praktické využití než na největší model.
Amazon’s decision this week to scale back parts of its homegrown artificial intelligence portfolio has been taken by the marketplace as a retreat from the frontier-model competition.
That’s only partly true. Amazon appears to be abandoning the most expensive and least defensible layer of the AI stack in order to strengthen the businesses where it already enjoys structural advantages: cloud computing, retail operations, advertising and logistics.
In other words, Amazon may be giving up on winning the AI popularity contest in favor of winning the AI economy. The tech and retail giant is scaling back development of several products within its Nova family, including its Premier and Omni models as well as Reel and Canvas. Some have reportedly shifted into maintenance mode, while engineering resources are being redirected toward a smaller number of advanced initiatives.
On the surface, the moves resemble a retreat. Viewed through a business lens, however, they look more like capital discipline. It also raises the stakes in Amazon’s competition with Walmart, which is applying AI to shopping, supply chains and employee productivity without attempting to compete directly in the frontier-model race.
See more: Amazon and Walmart Face a New Gatekeeper for Loyalty
Retailers Get Specific About the AI They Need for Their Operations Amazon does not need to build the world’s most celebrated AI model to become one of the biggest economic winners from AI. It needs companies to rent its computing infrastructure, deploy models through AWS and use artificial intelligence to buy more ads, move more inventory and lower the cost of fulfilling orders.
Amazon is restructuring its artificial intelligence operation, scaling back several homegrown models and concentrating resources on a smaller number of advanced projects. The shift comes as Amazon prepares to spend heavily on AI infrastructure while trying to turn the technology into practical advantages across its cloud, advertising, logistics and retail businesses.
Whether an enterprise chooses Anthropic, Meta, Amazon or another provider, AWS benefits when customers consume more compute. Amazon Bedrock becomes more valuable as organizations seek a single environment to deploy, govern and switch among multiple models.
Amazon’s strategic rival is not only OpenAI or Google. It is Walmart.
See also: Amazon and Walmart’s Summer Sale Wars Deliver a Win (With An Asterisk)
Walmart is applying AI to product search, supply chains, employee productivity and store operations without making a major bid to become a frontier-model leader. That contrast matters because it points toward the next phase of retail AI competition.
Amazon and Walmart are unlikely to win based on which company trains the most impressive general-purpose model. They will win based on which company can connect increasingly available intelligence to proprietary commercial systems.
For Amazon, those systems include fulfillment centers, marketplace sellers, advertising inventory, Prime relationships and AWS. For Walmart, they include stores, local inventory, supplier relationships, employee workflows and purchase data.
The competitive advantage is shifting from model ownership to operational context.
Consumers now use mobile devices for 53% of purchases, but according to new data from PYMNTS Intelligence and Visa Acceptance Solutions, the bigger shift is happening before checkout. The report, “Global Digital Shopping Index: The AI-Powered Shopper Has Arrived,” revealed the ways in which the smartphone has become an in-store force. Shoppers now use their phones to discover products, compare prices, read reviews, check inventory, access loyalty offers and pay in stores.
Amazon podle Financial Times zjistil „katastrofálně drahé“ překročení rozpočtu při nasazení umělé inteligence. Jeden projekt skončil 860 % nad rozpočtem po útratě 1,8 milionu USD.
Amazon has reportedly uncovered instances of “catastrophically expensive” cost overruns caused by errors in AI deployment.
That’s according to a report Thursday (July 30) from the Financial Times (FT), citing multiple sources familiar with the matter.
Those sources said that Amazon senior engineers told colleagues at a staff meeting earlier this week that efforts to switch tasks from conventional programming to using artificial intelligence models had caused “unplanned” spending.
The FT notes that the issue underlines the trouble even the largest tech companies are having with weaving AI into day-to-day operations without spending too much.
“It’s difficult to figure out how much anything [AI related] costs,” a senior Amazon employee told the FT.
According to the FT’s sources, employees learned during a presentation this week about an incident in which Amazon spent $1.8 million on matching author details with listings on the company’s eCommerce site using Anthropic’s Claude Sonnet despite the deployment failing.
This meant the project ran 860% over budget, with the spending taking five months to detect, the sources added. Engineers reportedly told staff the overspending wasn’t a one-time thing. In another incident, Amazon incurred around $541,000 in unanticipated costs tied to creating financial auditing tools.
“As with any new technology, we’re experimenting, learning and improving how we use it, including how we drive cost efficiencies,” an Amazon spokesperson said in a statement to PYMNTS.
“Cherry-picking small, isolated examples where teams are learning from one another and portraying them as business as usual doesn’t reflect how teams across Amazon are using AI.”
The news follows reports from earlier this month that AI spending by the world’s biggest tech companies have left investors feeling uneasy.
Meanwhile research by PYMNTS Intelligence finds companies from a range of industries investing more in AI, though for different reasons.
“Financial firms are funding AI to improve productivity, sharpen competitive positioning and reduce risk. Healthcare firms are still using budgets to test what works. Media and advertising firms are moving quickly, often with strong executive backing, but with less reliance on hard financial returns,” the report said.
“The spending pattern suggests that AI is entering a more practical phase. Like a company moving from blueprints to construction, enterprises are beginning to decide which projects deserve real capital and which still need proof.”
Amazon po uzavření trhu oznámí výsledky za 2. čtvrtletí; trh sleduje hlavně AWS a kapitálové výdaje. Odhady počítají s EPS 1,82 USD a tržbami 196,47 miliardy USD.
Amazon is set to announce its second-quarter earnings after the bell on Thursday.
Here's what analysts are expecting, according to estimates compiled by LSEG:
Earnings per share: $1.82 Revenue: $196.47 billion Wall Street is also looking at other key revenue numbers:
Amazon Web Services: $40.54 billion expected, according to StreetAccountAdvertising: $19.43 billion expected, according to StreetAccountInvestors are watching Amazon and the rest of the so-called hyperscalers' capital expenditures as the mood around massive investments in artificial intelligence has grown increasingly jittery. Alphabet shares sank last week after the company hiked its capex forecast for the year to as high as $205 billion.
On Thursday, Microsoft shares surged as much as 15% after the company reported better-than-expected earnings and reaffirmed its 2026 capex plans. Meta's stock tumbled 9%, meanwhile, after it gave a light revenue forecast for the current quarter, with its AI bets eating into its cash flow.
Amazon's capital expenditures reached $44.2 billion in the first quarter, up 77% from a year ago, and the figure is expected to creep higher in the second quarter to $49.3 billion, per FactSet data.
The company held steady on its February guidance that capex will hit roughly $200 billion for 2026. But several analysts are expecting Amazon to follow in the footsteps of Alphabet and lift its forecast for the year.
Read more CNBC tech newsMicrosoft beats Q4 cloud expectations as full-year Azure revenue tops $100 billionMeta's Reality Labs lost over $4.6 billion in second quarterMeta posts earnings miss, issues light revenue guidanceTim Cook's last earnings call comes at momentous time for Apple with stock at recordAnalysts at Morgan Stanley wrote in a research note earlier this month that the "ecosystem remains compute-constrained and urgency to spend remains high." They now expect Amazon's capex to reach $218 billion this year, and forecast budgets to keep rising through 2028, when capex could total $318 billion.
The analysts were also bullish on Amazon's cloud business, pointing to its "private lab deals" as a catalyst for "multi-year growth durability." Amazon has continued to deepen its cloud and chips partnerships with the leading AI providers OpenAI and Anthropic. In April, it struck a deal with Meta to supply the social networking giant with AWS Graviton chips.
"We also think AWS's access to almost all of the leading models, small/medium and customized models position it as a winner in a world where optimizing token cost per task is the key," Morgan Stanley analysts wrote.
Cloud growth will be in focus after Amazon's primary rivals both posted strong results. Google Cloud revenue jumped 82% year over year in the most recent quarter. Microsoft's Azure cloud revenue rose 43% during the fiscal fourth quarter.
AWS revenue is expected to rise about 31% from a year ago, according to StreetAccount, compared with 28% growth in the first quarter, which represented its fastest expansion in more than three years.
While Amazon continues to invest in AI, it has trimmed its corporate head count. The company held layoffs in its customer service and seller support divisions in recent months.
Amazon stock chart.
Last week, it announced job cuts in its artificial general intelligence unit, marking the latest reorganization of that group after Amazon installed a new AGI leader and the head of its AGI Lab announced his departure.
During the second quarter, Amazon hosted its annual Prime Day discount bonanza. The company moved up the event from its typical July time frame, citing a busy calendar marked by the World Cup and America's 250th anniversary of independence.
Mizuho analysts wrote in a Monday note that the timing shift could lead to a slowdown in Amazon's North America retail sales growth in the third quarter before they reaccelerate in the fourth quarter.
U.S. online spending across all retailers during Prime Day, which ran June 23 through June 26, grew about 9.3% year over year to $26.4 billion, according to Adobe. Amazon doesn't release sales figures from the event.
Evercore analysts described the event as "reasonably successful" in a note to clients earlier this week. Analysts at KeyBanc said their proprietary data showed Prime Week spending rose 41.7%, compared with 50.5% last year, indicating the event was "strong, but not as strong as last year."
Amazon stock is up about 3% year to date, while the S&P 500 has risen roughly 8%.
Americký e-shop a poskytovatel cloudové infrastruktury Amazon zveřejní své výsledky hospodaření za 2Q 2026 již dnes po uzavření amerických trhů. Přinášíme přehled toho nejdůležitějšího, co bude stát za pozornost.
Výnosy potáhne AWS i reklama Celkové výnosy by podle analytiků měly meziročně vzrůst o 17,5 % na 197,01 mld. USD, tedy do horní poloviny výhledu společnosti 194 až 199 mld. USD. Růst by měly táhnout divize AWS a reklamních služeb.
Odhady výnosů Amazonu ze 2Q dle divize
(mld. USD) Divize Konsensus 2Q 2025 Meziroční změna Online prodej (1P)
69,92 61,49 +14 % Služby pro prodejce třetích stran (3P)
46,15 40,35 +14 % Cloudové služby AWS
40,57 30,87 +31 % Reklamní služby
19,32 15,69 +23 % Služby související s předplatným 13,75 12,21 +13 % Kamenné obchody 5,87 5,60 +5 % Ostatní 1,66 1,50 +11 % Klíčovým tématem zůstává AWS Nejsledovanějším segmentem bude bezpochyby AWS, u kterého se očekává další zrychlení. Po 20% růstu výnosů ve 3Q 2025, 24 % ve 4Q a 28 % v 1Q 2026, trh očekává meziroční růst o 31 % na 40,57 mld. USD. Analytici z Wells Fargo očekávají dokonce zrychlení na +34 % meziročně, přičemž odhadují příspěvek Anthropicu k meziročnímu růstu AWS ve 2Q (oproti 1Q) dodatečnými ~400 bazickými body.
Pozornost si zaslouží také objem nezpracovaných zakázek. Management naposledy uvedl backlog AWS ve výši 364 mld. USD, a to bez následně uzavřené obrovské dohody s Anthropicem (>100 mld. USD). Vedle cloudu bude také stát za pozornost případný komentář k byznysu s vlastními čipy (Graviton a Trainium). Ten podle posledního komentáře ve výsledcích za 1Q dosahoval ročního tempa tržeb 20 mld. USD s trojciferným meziročním růstem.
Zisk na akcii bude pravděpodobně zkreslený přeceněním Anthropicu Trh odhaduje zisk na akcii ve výši 1,84 USD. Stejně jako ve výsledkovém reportu Alphabet za 2Q bude však zisk na akcii pravděpodobně zkreslený přeceněním podílu v Anthropicu. Již výsledky za 1Q zahrnovaly přecenění ve výši 16,8 mld. USD právě z tohoto podílu. Více vypovídající tak bude provozní zisk, který Amazon očekával v rozmezí 20 až 24 mld. USD. Trh odhaduje 23,61 mld. USD.
Kapitálové výdaje ve středu zájmu Amazon již avizoval, že letos plánuje proinvestovat zhruba 200 mld. USD napříč AI infrastrukturou, čipy, robotikou, logistickými aktivy i satelity na nízké oběžné dráze (v rámci Amazon LEO). Za samotný druhý kvartál očekávají analytici kapitálové výdaje 49,41 mld. USD. Bude tak zajímavé sledovat, zda Amazon ve stopách Alphabetu svůj letošní výhled kapitálových výdajů navýší.
Odvrácenou stranou investic je pokračující tlak na volné hotovostní toky, které ve výsledcích za 1Q za posledních dvanáct měsíců činily pouhých 1,23 mld. USD. Dá se tak očekávat, že stejně jako u Alphabetu se dostanou do záporných hodnot.
Představení společnosti Zajímá vás společnost Amazon? Přečtěte si první a druhý díl podrobného představení společnosti.
Akcie Amazon Akcie Amazon (AMZN) před výsledky posilují o 4,95 % na 237,86 USD.
Společnost Zoox, dceřiná společnost Amazonu vyvíjející autonomní vozidla, bude moci v USA během následujících dvou let komerčně nasadit až 2 500 vozů ročně. Americký Národní úřad pro bezpečnost silničního provozu (NHTSA) oznámil, že firmě udělí dočasnou výjimku umožňující rozšíření provozu, a to za podmínky posíleného a přizpůsobivého dohledového rámce, který se bude vyvíjet spolu s technologií Zoox.
Výjimka je pro Zoox zásadní, protože jeho vozidlo nemá volant ani pedály a umí jezdit obousměrně. Provozovatelé autonomních vozidel bez klasických ovládacích prvků potřebují federální schválení. Zoox si bezpečnost svého autonomního vozu certifikoval sám v roce 2022 a dříve už získal výjimku pro výzkumné a demonstrační účely. Firma aktuálně provozuje jízdy v Las Vegas a San Franciscu a testuje v několika dalších městech.
Waymo od Alphabetu, které trhu autonomních vozidel v USA dominuje, obdobné výjimky dosud nepotřebovalo, poněvadž jeho flotila stojí na běžných vozech s volantem a pedály. NHTSA zároveň pracuje na nových bezpečnostních požadavcích upravujících chování autonomních vozidel na silnici. Změny by mohly uvolnit cestu účelově konstruovaným vozům firem Zoox, Waymo a Tesla. Úřad chce odstranit byrokratické překážky v rámci širší snahy dostat autonomní vozy na silnice ve větších počtech.
Představení společnosti Zajímá vás společnost Amazon? Přečtěte si první a druhý díl podrobného představení společnosti.
Akcie Amazon Akcie Amazon (AMZN) v předburzovní fázi posilují o 3,69 % na 235,01 USD.
Amazon rozšířil roli Swamiho Sivasubramaniana, který nově vede „Agentic AI & Emerging Technologies“ a bude určovat AI strategii i technický směr v AWS. Zároveň firma omezuje práci na frontier modelech a víc se soustředí na AI aplikace a služby.
by Todd Bishop on Jul 29, 2026 at 4:38 pmJuly 29, 2026 at 4:50 pm
Swami Sivasubramanian on stage at AWS re:Invent in 2023, with a keynote slide behind him. (GeekWire Photo / Todd Bishop) Amazon just broadened the role of Swami Sivasubramanian, the VP behind AWS’s agentic AI push, expanding and renaming his organization to include emerging technologies, and giving him a larger mandate to shape AI strategy and technical direction across the cloud division.
Sivasubramanian announced the change in a LinkedIn post on Wednesday, saying he will now lead the “Agentic AI & Emerging Technologies” organization, with an expanded title to match.
He described emerging technologies as “the work that doesn’t fit neatly into a team because it doesn’t exist yet.” It’s a type of work he’s done before, including formative roles with DynamoDB, now one of AWS’s most widely used databases, and Bedrock, the platform through which AWS customers access AI models from Anthropic, Meta, and others.
“When the industry is changing this quickly, it’s important to step back, pressure-test ideas, and see the big picture to help teams scale their impact,” he wrote.
Sivasubramanian’s agentic AI division has operated as a test case for running Amazon like a startup, with small teams shipping products in months that once took a year, as GeekWire reported in June.
He’ll continue overseeing the teams behind Kiro, Amazon Quick, and AWS Transform, while taking on new areas including neurosymbolic AI and a recently announced service called AWS Context, which builds a knowledge graph from a company’s existing data so AI agents can query it.
The expansion builds on moves already underway, including the hiring in May of former Microsoft security exec Shawn Bice to lead AWS’s Automated Reasoning Group, which uses mathematical techniques to verify that AI agents are doing what they’re supposed to do.
It also coincides with a broader reshuffling of Amazon’s AI strategy and teams.
Amazon laid off employees in its artificial general intelligence organization last week and confirmed the closure of its San Francisco AGI site, but noted that its frontier model research will continue under Pieter Abbeel, who joined Amazon through its acquisition of robotics startup Covariant.
Business Insider reported Monday that Amazon is winding down most of its in-house Nova foundation models, including its high-end Premier and Omni models, and concentrating engineering talent and computing resources on a smaller number of frontier efforts.
Sivasubramanian’s expanded role is separate from the AGI changes, and the two organizations operate independently of one another within Amazon. But the net effect is that Amazon is narrowing its work in frontier models while expanding its efforts in AI applications and services.
This mirrors a larger pattern across the industry, as big AI providers look to ensure the billions they’re sinking into chips and data centers pay off in customer outcomes and business growth.
Analytici čekají, že Amazon ve 2. čtvrtletí vykáže tržby 196,02 miliardy USD a zisk na akcii 1,82 USD. Firma zároveň očekává tržby 194 až 199 miliard USD.
Analysts expect the e-commerce giant to report Q2 revenue of $196.02 billion, up from $167.70 billion in last year’s Q2, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in seven straight quarters and in nine of the last 10 quarters overall.
Analysts expect Amazon Q2 earnings per share of $1.82, up from $1.68 in last year’s Q2.
The Seattle-based company has beaten analyst estimates for earnings per share in nine of the last 10 quarters. Guidance calls for revenue to be between $194 billion and $199 billion. The company did not provide earnings per share guidance.
Amazon Analyst RatingsHere are some of the most recent analyst ratings on Amazon.com stock and their price targets:
UBS: Maintained Buy rating, lowered price target from $333 to $305 BMO Capital: Maintained Outperform rating, raised price target from $355 to $360 Mizuho: Maintained Outperform rating, lowered price target from $325 to $320 Wedbush: Maintained Outperform rating, with $293 price target Wells Fargo: Maintained Overweight rating, raised price target from $313 to $322 Amazon Q2: Key Items to WatchAmazon posted double-digit revenue growth of 17% year-over-year in the first quarter, with the main segments of North America (+12%), International (+19%) and Amazon Web Services (+28%) all seeing double-digit growth.
AWS has been a standout performer in recent quarters, also posting revenue growth of 24% in the fourth quarter. The company said AWS growth in the first quarter was the fastest growth in 15 quarters.
The cloud segment is getting closer to passing International revenue and becoming the second-largest revenue driver each quarter.
AWS will be a key focus area for investors and analysts.
Another key will be any commentary on AI spending and AI monetization as the big technology companies look to show that their large capex is paying off in areas like revenue and margins.
Prime Video Bets On Blockbusters And Live SportsThe company’s Prime Video segment saw "Project Hail Mary" as a box office hit in March and likely into Q2.
"Masters of the Universe" didn’t perform as hot in theaters, with $113.8 million in global box office.
The hit show "Off Campus" saw huge viewership in the month of May, as did the final season of "The Boys."
NBA and NBA Playoffs coverage by Prime Video in April could also help boost overall advertising revenue for the company with live sports content being a key driver for this area.
Amazon is one of four Magnificent Seven stocks reporting this week and is also a key component of the S&P 500, Nasdaq 100 and Dow Jones Industrial Average. Here is Amazon’s place in three ETFs that track those indexes:
Strong earnings and guidance, along with a positive reaction to capex by investors, could provide a boost for those ETFs and the overall market.
Price ActionAmazon stock is up 0.4% to $231.82 on Wednesday versus a 52-week trading range of $196.00 to $278.56. The stock price is up 2.4% year-to-date in 2026.
Photo: Shutterstock
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Amazon.com Inc (NASDAQ:AMZN) is set to report its second quarter 2026 results on July 30, with UBS lowering its price target to $305 from $333 while maintaining a ‘Buy’ rating as it expects continued strength from Amazon Web Services and improving e-commerce profitability.
The UBS analysts wrote that the price target reduction reflects expectations for higher capital expenditures in 2027 and beyond due to rising component costs and increased demand for infrastructure.
The analysts also adjusted near-term AWS revenue expectations after moving OpenAI’s initial use of Amazon’s Trainium chips from the fourth quarter of 2026 into early 2027, shifting approximately $3 billion in revenue out of this year.
Despite the near-term adjustment, UBS highlighted AWS as a key driver of its bullish outlook, noting that it believes the market is underestimating the cloud unit’s backlog and revenue growth potential in the second half of 2026 and into 2027.
UBS forecasts AWS revenue growth of 36% in 2026, ahead of the Street estimate of 31%, and expects growth of 48% in 2027 compared with consensus expectations of 30%.
The analysts wrote that its largest divergence from consensus remains Amazon’s 2027 operating income outlook, which UBS estimates will be approximately 49% above current Street expectations.
UBS’s investment thesis is centered on continued AWS growth acceleration as Amazon expands capacity, alongside potential market share gains in e-commerce driven by improving service levels, including broader same-day delivery and increased investment in groceries.
The firm also expects improving unit economics to support faster margin expansion in Amazon’s retail business, as growth in units sold continues to outpace cost growth. In addition, UBS pointed to Amazon’s Prime Video advertising opportunity, highlighting the potential for higher-margin revenue growth as the service scales globally through partnerships and live sports offerings.
UBS maintained its ‘Buy’ rating, writing that Amazon’s valuation remains attractive, with the stock trading at around 14 times its updated 2027 earnings estimate. The firm argued that a premium asset such as Amazon should not trade at a discount to the broader market multiple.
The revised $305 price target, which implies upside from current levels of about $228, is based on a 30 times price-to-free cash flow multiple applied to UBS’s estimate of $109.9 billion in free cash flow from the third quarter of 2027 through the second quarter of 2028.
Amazon čeká po výsledcích za 2. čtvrtletí prudký pohyb, protože trh sleduje hlavně růst AWS a dopad masivních investic do AI. Opce naznačují zhruba 6% pohyb oběma směry, tedy asi 15 USD.
Amazon stock NASDAQ:AMZN could swing about $15 after its July 30 earnings as investors decide whether accelerating artificial-intelligence demand is beginning to justify the company’s unprecedented infrastructure spending.
Options prices imply a move of roughly 6% in either direction from about $231, creating a potential range near $217 to $246. The shares are approximately flat in 2026 and 17% below their May high.
The options market is signalling uncertainty because investors must judge growth and spending together, rather than relying on the usual combination of an earnings beat and upbeat revenue guidance alone this quarter.
Wall Street expects second-quarter revenue of about $196.75 billion and AWS sales near $40.49 billion.
Yet headline growth may not decide the reaction.
Amazon must show that cloud revenue is accelerating without margins collapsing under a capital-expenditure programme expected to reach $200 billion this year.
AWS revenue grew 28% to $37.6 billion in the first quarter, its fastest expansion in 15 quarters. Visible Alpha expects second-quarter sales around $40.5 billion, implying growth above 30%.
“AWS is the story, and AI is driving AWS,” Morningstar senior equity analyst Dan Romanoff wrote ahead of the report.
He said investors should focus on growth, backlog, capacity additions and utilisation, while warning that depreciation could weigh on cloud margins and Amazon’s overall profitability.
Bank of America raised its AWS growth forecast to 33% from 31%, while estimating total revenue of $198.8 billion and operating income of $24.1 billion.
KeyBanc analyst Justin Patterson expects AWS growth near 31% through 2026 and 2027 and raised his Amazon target to $335.
Goldman Sachs analyst Eric Sheridan, who also carries a $335 target, forecasts approximately 33% growth this year and 35% in 2027.
Growth of 32% to 33% would support the bull case. A result around 30% may merely meet expectations, while anything below that could disappoint if profitability also weakens.
Amazon’s trailing operating cash flow increased 30% to $148.5 billion in the first quarter, but free cash flow plunged to $1.2 billion from $25.9 billion.
The company attributed the decline mainly to property and equipment purchases supporting AI.
Wedbush analysts expect “continued heavy investment” in Amazon’s chips and satellite-internet network. Another spending increase could therefore eclipse an otherwise strong report.
AWS margin is critical. Visible Alpha expects 33.8%, down from 37.7% in the first quarter but above 32.9% a year earlier. Estimates range from 30.9% to 38.2%, illustrating uncertainty over the expansion’s cost.
Investors may tolerate a margin near 34% if AWS growth reaches 32% or better.
A steeper contraction alongside higher capital spending would suggest Amazon is purchasing cloud growth at an increasingly heavy price.
Expected second-quarter earnings should not be compared directly with first-quarter earnings of $2.78 a share.
That result included a $16.8 billion pre-tax gain on Amazon’s Anthropic investment.
Amazon guided for second-quarter sales of $194 billion to $199 billion and operating income of $20 billion to $24 billion, assuming Prime Day occurred during the period.
Bank of America expects only a “modest” retail lift from the event.
The larger issue is whether Prime Day pulled purchases forward, weakening the September quarter.
Analysts expect third-quarter revenue guidance broadly between $200.5 billion and $205.5 billion.
Amazon could outperform the implied range if AWS grows 32% to 33%, margins hold near 34%, operating income exceeds guidance and spending remains controlled.
The shares could fall despite a headline beat if cloud growth disappoints, margins contract sharply, capital expenditure rises or third-quarter guidance is soft.
Amazon čeká silnější růst AWS: analytici nyní odhadují meziroční růst tržeb na 31–33 %, Bank of America až na 33 %. V prvním čtvrtletí AWS rostl o 28 %.
Amazon (AMZN -0.19%) is set to report its second-quarter earnings on Thursday, July 30, and expectations are high, especially for the AWS cloud services business. For example, analysts at Bank of America recently raised their AWS growth forecast to 33% year-over-year, specifically calling out demand from Anthropic and OpenAI workloads.
This would be a significant acceleration from the 28% growth rate the commerce and tech giant reported in the first quarter and would likely be taken as a positive sign by investors. But I'm going to make the bold prediction that even these lofty expectations aren't enough -- in fact, I predict that AWS revenue growth could come in at 35% or more.
Image source: Getty Images.
Amazon's second-quarter earnings: What the market expects As mentioned, Amazon reports earnings on Thursday (after the market's close), and analysts expect about $197 billion in total revenue and $1.82 in earnings per share, which would be 8% higher than a year ago.
When it comes to AWS, expectations vary depending on who you ask, but virtually all analysts expect to see acceleration compared to the first quarter. Most reputable analyst forecasts expect AWS revenue growth in the 31%-33% range.
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So, why am I predicting an even better number? For one thing, I agree that the demand from Anthropic and OpenAI is likely to be a big driver of second-quarter growth. And AWS revenue growth has already been accelerating -- in fact, the 28% revenue growth rate AWS posted in the first quarter was the fastest in nearly four years.
The most important number isn't AWS top line growth Don't get me wrong. If AWS posts a blowout number, it could make or break the market's reaction to Amazon's earnings report. But the AWS growth all by itself isn't the full story -- it's how efficiently Amazon is spending its money to achieve said growth.
In February, Amazon CEO Andy Jassy guided for $200 billion in capex for 2026, most of which will be spent on AI infrastructure. And while Amazon can certainly afford to spend this money, the big question on investors' minds has been whether it will produce an adequate return for the company. In other words, will the growth (and profits) that Amazon produces justify such a large price tag?
To put it mildly, accelerating AWS growth would be a big step in the right direction, showing investors that the juice is worth the squeeze. And if AWS can report better-than-expected growth without an alarming increase in projected capex, it would be even better. But when the earnings report is released, it will be important to pay close attention to AWS's growth and the cost of that growth.
Amazon prodal dluhopisy za 25 miliard USD, aby financoval rozšiřování AI infrastruktury. Na rok 2026 plánuje kapitálové výdaje ve výši 200 miliard USD.
In 2026, one of the dominant investment themes is concern about how much large tech companies like Amazon (AMZN -0.19%) are spending on building artificial intelligence (AI) infrastructure. That concern is reflected in the Amazon stock price; as of this writing, shares are up less than 2% so far this year.
Amazon's recent bond sale and capital expenditure plans, however, suggest that the company has a far different concern than most of the market.
Andy Jassy, Amazon (AMZN), CEO. Image source: Amazon.
Ballooning spending In early July, Amazon sold $25 billion worth of bonds to continue fueling the build-out of AI infrastructure. In addition, its capital expenditures for 2026 are projected at $200 billion, a significant increase from the $131 billion spent in 2025. As a point of comparison, Meta Platforms expects its capital expenditures to fall between $125 billion and $145 billion, while Alphabet plans to spend between $195 billion and $205 billion.
The worry is that the spending may take years to yield any meaningful return. The more extreme concern is that AI will become a money pit with almost no return, and that large tech companies have ultimately wasted years of time, resources, and capital on it.
That said, Amazon clearly has a different fear.
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Missing out In tech, history is littered with missed opportunities. One classic example is when Blockbuster could have bought Netflix in 2000 for $50 million. Blockbuster went on to file for bankruptcy in 2010, while Netflix today is worth more than $291 billion.
That fear of missing out or making one critical mistake, like not investing enough in building AI infrastructure, can help explain why Amazon is spending so much. It also explains why there may seem to be a disconnect: Investors worry it is spending too much, while Amazon fears it's not spending enough.
In his letter to shareholders in April, Amazon CEO Andy Jassy addressed the spending head-on:
AI will reinvent every customer experience, and there will be a slew of new experiences only possible because of AI. I've followed the public debate on whether this technology is overhyped, whether we're in 'a bubble,' and if the margins and ROIC will be appealing. My strong conviction, at least for Amazon, is that the answers are no, no, and yes.
Jassy went on to say, "AI is a once-in-a-lifetime opportunity where the current growth is unprecedented and the future growth even bigger."
Jassy could be right, as this may still just be the early stages before the full AI growth story takes shape, and Amazon clearly doesn't want to miss out. The trade-off for having the patience to let those investments pay off is that Amazon may lag the S&P 500 (^GSPC +0.21%), as it has this year.
Amazon může při výsledcích za 30. července vykázat výrazný účetní zisk z podílu v Anthropic, který Bank of America označuje za hlavní tahoun reportu. Hodnota podílu by mohla prudce vzrůst po IPO Anthropic při valuaci kolem 965 miliard USD.
It's Amazon's (AMZN -0.19%) turn to step up to the earnings podium. The online retailer founded by Jeff Bezos is expected to show strong growth in its cloud computing business, Amazon Web Services, and is likely to increase its planned $200 billion capital expenditure budget as memory and storage products become more expensive.
I'm fully expecting Amazon to post solid second-quarter earnings on Thursday, July 30. But considering that investors seem to have the yips right now about spiraling data center costs, I expect the stock to drop due to capital expenditure growth and shrinking free cash flow. Yet there's one item that certainly will cause investors to smile: the company's massive gains from its stake in the start-up AI company Anthropic.
Amazon was an early investor in Anthropic, the company behind Claude, and put $13 billion in with the option to invest $20 billion more. That $13 billion stake is now worth much more, given that Anthropic is considering going public at a valuation of around $1 trillion. In a research note, Bank of America analysts point to Amazon's stake in Anthropic as a significant driver in its upcoming earnings report, generating a strong mark-to-market gain.
Let's see how Amazon's stake in Anthropic has grown, and what investors should be looking for in Amazon's Q2 update.
Amazon founder and executive chairman Jeff Bezos. Image source: Amazon.
Amazon is winning big with Anthropic Amazon's investment in Anthropic includes an initial $8 billion investment in 2024, followed by another $5 billion in 2026. Published reports indicate that Amazon has 21% stake in the AI company.
However, at the end of the first quarter, Amazon valued its Anthropic stake at $74.2 billion -- $42.2 billion in convertible notes and $32 billion in nonvoting preferred stock. That would imply Anthropic had a value at that time of about $353.3 billion.
Last month, Anthropic filed a confidential IPO with the Securities and Exchange Commission that places Anthropic's value at $965 billion. That would push the value of Amazon's 21% stake to $202.6 billion.
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Putting Amazon's gains into perspective In the first quarter, Amazon reported net income of $30.25 billion -- a solid number, with much of that coming from its fast-growing Amazon Web Services. But it could be looking at a much larger gain -- on paper -- in this quarter just from its Anthropic stake, which appears set to increase by $128.4 billion in a single quarter.
That would certainly take the sting out of any dip in Amazon's stock price post-earnings. Big tech stocks have been hammered so far this week on fears of overspending on data centers and AI infrastructure, with Alphabet stock dropping 6% post-earnings after it raised its capex spending from $185 billion to $200 billion. Tesla fell even further after reporting a negative free cash flow of $1.1 billion for the quarter.
Amazon may suffer the same fate when it reports earnings. But investors who focus only on capex will miss the bigger picture. Anthropic's rapid growth is creating tremendous value for Amazon, and in the July 30 earnings report, investors may learn that its stake in the AI start-up is one of its most valuable assets.
Bank of America is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Tesla. The Motley Fool has a disclosure policy.
Jeff Bezos řekl, že vlastní čipový byznys Amazonu se rýsuje jako jeho další pilíř vedle Marketplace, Prime a AWS. Amazon do AI čipů Trainium a Inferentia investuje už přes deset let.
by John Cook on Jul 28, 2026 at 9:33 amJuly 28, 2026 at 9:33 am
Amazon’s next pillar could be built on a foundation of silicon.
In a new interview with Fortune, Amazon founder and Executive Chair Jeff Bezos says the company’s custom chip business is on track to become one of Amazon’s most durable businesses, placing it alongside Marketplace, Prime, and Amazon Web Services as a core pillar of the company.
“A few of our offerings have become durable pillars, things like Marketplace and Prime and AWS,” Bezos told Fortune. “What I see right now is that our chips business, our silicon business, is lining up to be our next pillar.”
The comments offer one of Bezos’ clearest public endorsements yet of Amazon’s push to design its own chips for artificial intelligence, an increasingly important strategy as demand for AI computing soars and companies look for alternatives to Nvidia’s dominant processors.
More than a decade of investment Amazon has invested heavily in custom silicon through Annapurna Labs, the Israeli chip startup it acquired in 2015. The company now develops its own AI chips under the Trainium and Inferentia brands, designed to train and run large language models while reducing costs for customers using Amazon Web Services.
AWS has positioned the chips as a lower-cost alternative for AI developers. AWS has positioned the chips as a lower-cost alternative for AI developers. Anthropic trains and runs its Claude models on Trainium, and OpenAI has committed to consume about 2 gigawatts of Trainium capacity, ramping in 2027.
The company disclosed revenue for its in-house data center chips for the first time earlier this year, and since then its Trainium, Graviton, and Nitro chips have grown to a combined annual run rate of more than $20 billion. Amazon has been pouring billions of dollars into AI infrastructure, including new data centers and custom networking hardware.
Amazon CEO Andy Jassy has repeatedly argued that demand for AI computing will remain strong for years, making investments in chips, servers, networking equipment, and power generation essential to the company’s long-term growth.
In an earnings release earlier this year, Jassy signaled plans to pour a record $200 billion in capital expenditures across Amazon in 2026, citing “seminal opportunities like AI, chips, robotics, and low earth orbit satellites.”
The real potential for Amazon’s chips business could come in going beyond the walls of its own data centers. Jassy wrote in his annual letter to shareholders this year that it’s “quite possible” Amazon will sell racks of its internally developed chips to third parties in the future.
Amazon’s fourth pillar? This discussion about Amazon’s “pillars” goes back to Bezos’ 2014 letter to shareholders, where he described four characteristics of what he called a “dreamy” business: “Customers love it, it can grow to very large size, it has strong returns on capital, and it’s durable in time — with the potential to endure for decades.”
AWS, Marketplace, and Prime are considered the first three pillars. The question of what could become Amazon’s “fourth pillar” has been debated for more than a decade, with areas including shipping and logistics and Alexa cited as contenders in the past.
The company’s big bet on silicon also was emphasized by Jassy in the Fortune piece. He told the magazine that chips are often the key to computing. “The growth in AI has been so significant, but we have a chips business that we built over the last decade here that is growing very quickly,” he said.
The profile appeared alongside Fortune’s release of its 2026 Global 500 ranking, which placed Amazon at No. 1 for the first time, ending Walmart’s 12-year run as the world’s largest company by revenue after Amazon surpassed $700 billion in annual sales, as reported previously.
Walmart fell to No. 2, followed by State Grid of China, UnitedHealth Group, and Saudi Aramco. The magazine reports that Amazon is on pace to be the first trillion dollar company by revenue.
Amazon reports Q2 2026 earnings on Thursday afternoon. Check back with GeekWire for coverage.
Rogers Communications a Prime Video uzavřely 12letou sublicenční dohodu, která od sezóny 2026-27 dá Prime Video exkluzivní práva na středeční noční zápasy NHL v Kanadě. Součástí jsou i vybrané série play off Stanley Cupu.
Item 1 of 2 The Rogers Building, the green-topped corporate campus of Canadian media conglomerate Rogers Communications is seen in downtown Toronto, Ontario, Canada July 9, 2022. REUTERS/Chris Helgren/File Photo
[1/2]The Rogers Building, the green-topped corporate campus of Canadian media conglomerate Rogers Communications is seen in downtown Toronto, Ontario, Canada July 9, 2022. REUTERS/Chris Helgren/File Photo Purchase Licensing Rights, opens new tab
July 28 (Reuters) - Rogers Communications (RCIb.TO), opens new tab and Amazon.com's (AMZN.O), opens new tab Prime Video on Monday signed a 12-year sublicensing agreement granting the streaming platform exclusive rights to broadcast Wednesday night national NHL games in Canada beginning with the 2026-27 season.
The deal also grants Prime Video exclusive rights to select Stanley Cup playoff series and expands its NHL offering in Canada, where Rogers last year renewed national NHL media rights through the 2037-38 season.
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Here are more details:
The package includes at least 26 national regular-season games annually, starting September 30, 2026.
The agreement comes as streaming platforms invest heavily in live sports rights, one of the few categories of programming that continues to draw large real-time audiences.
Sportsnet will retain exclusive English-language rights to more than 500 national NHL games per season, including most playoff coverage.
It builds on Rogers' broader 12-year NHL national media-rights renewal covering the 2026-27 to 2037-38 seasons.
Rogers is one of Canada's largest sports media companies, with major sports broadcasting rights and ownership stakes in leading professional franchises.
Financial terms of the sublicensing deal were not disclosed.
Reporting by Rashika Singh in Bengaluru; Editing by Tasim Zahid
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Amazon před výsledky za Q1 vykazuje silný růst: tržby v Q1 stouply o 16,6 % na 181,52 mld. USD a provozní marže dosáhla rekordu 13,1 %. AWS rostl o 28 % na 37,6 mld. USD.
Amazon’s (NASDAQ:AMZN | AMZN Price Prediction) setup heading into July 30 earnings looks compelling. The company trades at roughly the same multiple as the S&P 500, yet the business is compounding across four segments at double-digit rates while its cloud franchise reaccelerates. Wall Street analysts give the stock 47 buys, 15 strong buys, 4 holds, and zero sells at an average price target of $313.13, implying 32.25% upside from its $232.11 price. Here are 3 of the biggest reasons to buy Amazon stock today:
Reason #1: Amazon Offers Above-Market Growth at a Market-Level P/E AMZN trades at a forward P/E of 27, roughly in line with the broad market. Shares are up just 0.56% year to date despite Q1 revenue growth of 16.6% YoY to $181.52B, an operating margin that hit 13.1% (a company record), and Q1 EPS of $2.78 versus $1.73 expected. Investors are essentially paying market-multiple prices for above-market growth. Polymarket puts odds of an earnings beat at 95.2%.
Reason #2: AWS Is Growing at Its Fastest Rate in 15 Quarters AWS printed $37.6 billion at 28% YoY growth, the fastest in 15 quarters, on a $150 billion run rate. The custom-silicon stack crossed a $20 billion annual run rate with triple-digit growth, and AWS ended Q1 with a $364 billion backlog. Anthropic committed over $100 billion post-quarter, on top of Trainium commitments totaling over $225 billion.
Reason #3: Advertising and Retail Add Two More Growth Engines Advertising is now a $70B+ TTM business growing 22-24%, Stores unit growth reached 15%, the highest since COVID lockdowns, and grocery gross sales topped $150 billion in 2025. Q2 guidance calls for net sales of $194B to $199B and operating income of $20B to $24B.
Amazon Is Funding Its AI Buildout With Operating Cash Flow Microsoft (NASDAQ:MSFT) trades at a nearly identical P/E of 28 but lacks Amazon’s advertising and retail flywheels, and MSFT’s Q3 capex hit $30.88 billion, up 84% YoY.
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Alphabet (NASDAQ:GOOGL) grew Cloud 82% in Q2 2026, faster than AWS, but produced negative $5.86 billion of free cash flow and raised roughly $70 billion in equity and debt to fund the buildout. Amazon generated $26.03 billion of Q1 operating cash flow, up 53%, funding its AI buildout from the P&L.
Why Amazon’s $200 Billion Spending Plan Should Pay Off Amazon’s enormous AI investment program is the primary risk heading into Thursday’s Q2 report. The company spent $43.2 billion in Q1 cash capex, and prediction markets are pricing 95% odds of 2026 outlays above $200 billion.
However, AWS ran at a 37.7% operating margin in Q1, Trainium is booked with $225 billion in commitments, and Andy Jassy told investors, “We have high confidence this will be monetized well, as we already have customer commitments for a substantial portion of it and that it will yield compelling operating margins and ROIC.” Thursday’s report will show whether those investments can sustain faster growth without sacrificing Amazon’s newly established margin gains.
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Amazon přestavuje AI strategii a utlumuje většinu vlastních modelů Nova včetně Premier, Omni, Reel a Canvas. Zaměřuje se na nový frontier model pod vedením Frontier Model Research (FMR).
Peter DeSantis, Amazon's SVP of Foundational AI Models, Custom Silicon, and Quantum Computing Bloomberg/Getty Images Amazon is overhauling its AI strategy, winding down many in-house models, reorganizing teams, and focusing engineers on a new strategy to compete at the frontier, according to people familiar with the matter.
The changes follow layoffs in Amazon's Artificial General Intelligence, or AGI, organization last week and the shutdown of AGI Lab, a research group it created in 2024 after hiring most of the team behind AI startup Adept.
The restructuring suggests Amazon is refocusing its AI strategy. Rather than investing across a number of text, image, and video models, the company is concentrating engineering talent and scarce computing resources on its highest priorities.
"KTLO" Amazon has begun deprecating most of its in-house flagship Nova models, including the high-end Premier and Omni models, Reel video-generation model, and Canvas image-generation model, according to people familiar with the matter.
Some Amazon employees described these models as operating in "KTLO," short for "keep the lights on," an engineering term for software that remains supported for existing customers but is no longer a major development priority.
FMRAccording to the people familiar with the matter, resources have increasingly moved away from the existing Nova models and toward a new frontier-model effort led by researcher Pieter Abbeel, who came to Amazon through the acquisition of AI robotics startup Covariant. Known internally as Frontier Model Research, or FMR, the initiative has become a top priority this year.
Under that effort, Amazon is developing a new flagship foundation model that is expected to debut at this year's re:Invent annual conference, which typically happens in the fall.
An Amazon spokesperson told Business Insider the company has long supported AI models in production for extended periods because customers depend on them, and said Amazon remains committed to investing in frontier models.
"AI models remain one of the most important things we're working on, and that hasn't changed," the spokesperson said. "As with any AI portfolio, we continually evolve our model lineup based on what customers need, and we always provide customers clear guidance and migration paths as models advance."
Job cuts and departuresThe organizational change does not necessarily mean Amazon is abandoning Nova altogether. The remaining Nova portfolio includes the Nova 2 Sonic and Nova 2 Lite foundation models, Nova Forge, a service for building and customizing models, and Nova Act, Amazon's AI agent technology. Indeed, the new model that FMR is developing could emerge under the Nova brand.
Instead, the shift reflects a broader reorganization of Amazon's AI efforts that has unfolded over the past year.
Amazon created its AGI organization in 2023 to build foundation models and other technologies capable of powering future AI products across the company. Rohit Prasad, a longtime Alexa executive, led the organization until he departed in December 2025.
The AGI organization oversaw several specialized groups. One was AGI Lab, which Amazon established in 2024 after hiring AI startup Adept's cofounders and licensing its technology. Led by Adept cofounder David Luan, the lab focused on long-term AI research. Luan left Amazon in February, and the company shut down the AGI Lab last week as part of the latest reorganization.
Separately, Frontier Model Research was created within the AGI organization to develop Amazon's next generation of frontier AI models. After Prasad's departure, Amazon tapped Abbeel to lead the group. People familiar with the transition said FMR has since become the organization's primary focus.
DeSantis narrows the focusThe broader AGI organization was also reorganized. In December, Amazon placed it under senior vice president Peter DeSantis, combining it with the company's silicon development and quantum computing organizations.
People familiar with the transition said DeSantis has pursued a more focused AI strategy than his predecessor. Under Prasad, Amazon pursued multiple model families spanning text, image, and video generation. DeSantis, however, has concentrated Amazon's engineering talent and computing resources on a smaller number of frontier-model efforts, they said.
Employees said they have received little guidance about the long-term future of Nova models, fueling uncertainty across the organization.
The layoffs surprised many employees, the people said, because frontier model researchers had long been among Amazon's most prized technical talent. Employees said AGI also operated differently from the rest of the company, maintaining separate leveling and compensation systems to compete more aggressively for AI talent.
The changes mark a major shift in Amazon's AI ambitions. Just last year, AWS used its re:Invent conference to unveil Nova Omni 2 as its flagship multimodal reasoning model. In 2023, CEO Andy Jassy personally championed AGI as the team that would build Amazon's most ambitious foundation models, prompting the creation of six new research groups.
Less than three years later, the organization is retiring parts of its flagship Nova lineup and reorganizing around a new frontier model effort.
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Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail operations, AWS, Alexa, and its secretive internal work culture.Previously, he worked at CNBC, Fortune Magazine Korea, and Japan's Yomiuri Shimbun. He holds degrees from NYU and Columbia University’s Graduate School of Journalism.In 2022, Eugene broke a story uncovering Amazon’s practice of deceptively enrolling customers in Prime and deliberately making cancellation difficult. A year later, the Federal Trade Commission sued the company, citing his reporting. That case culminated in a record $2.5 billion settlement in 2025.His reporting has earned multiple honors, including the SF Press Club’s Bay Area Journalism Award and SPJ NorCal’s Excellence in Journalism Award.Eugene lives in the Bay Area. Contact him via email at [email protected], or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely. ExpertiseAmazon, Jeff Bezos, Andy Jassy, e-commerce, and cloud computing.Popular ArticlesAmazon:Internal Amazon emails give an exclusive look at how CEO Andy Jassy has started to run the company, with obsessive attention to the retail business and what some employees feel is micromanagingAndy Jassy will be the next CEO of Amazon. Insiders dish on what it's like to work for Jeff Bezos' successor, who built AWS into a $40 billion business.Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.Inside Amazon's flailing brick-and-mortar ambitions: missed projections, pressure to cut costs, and a war with Whole FoodsInside Amazon's complex employee-review system, where workers feel left in the dark and managers expect to give 5% of reports bad reviewsAfter 28 years, 'Day 2' finally arrives at AmazonAWS, Alexa, healthcare:Inside Amazon's struggle to break into the lucrative market for SaaS business applications, including an internal pitch to buy $38 billion HubSpotInside Amazon's struggle to crack Nvidia's AI-chip dominanceAmazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortagesAmazon is gutting its voice assistant, Alexa. Employees describe a division in crisis and huge losses on 'a wasted opportunity.'Amazon is working on a new 'Remarkable Alexa,' but internal politics and technical issues plague the projectAmazon projected huge losses from its healthcare business in 2024, but strong sales growth, internal document reveals
Amazon Generative AI Artificial Intelligence More Big Tech Exclusive
The most interesting thing about Amazon (AMZN -0.33%) and its upcoming second-quarter earnings report isn’t the growth of its web-based retail store. It’s not even the continued growth of Amazon Web Services, the biggest cloud computing company in the world.
Instead, investors will be looking at Amazon’s spending, particularly on servers, storage, and other infrastructure to build out its AI footprint. Amazon previously announced it would spend a mind-boggling $200 billion on capital expenditures this year, and all signs point to that number rising when it reports earnings after the close on July 30.
Here’s why.
Image source: Amazon.
Wall Street is focused on AI spendingWe are deep in earnings season, and one of the major themes so far has been spending by big tech stocks -- and the market’s negative reaction to that. Alphabet’s (GOOG +2.33%) (GOOGL +2.13%) second-quarter report on July 22 showed that it grew revenue by 24% to $119.79 billion, and its Google Cloud revenue jumped by 82% to $24.76 billion. But investors fixated on Alphabet’s announcement that it would increase its capex from $185 billion to $200 billion, which would match Amazon’s own plans. Alphabet stock fell 6% on the news.
Then there’s Tesla (TSLA -1.43%), another member of the Magnificent Seven grouping. Tesla doesn’t have a cloud computing business. Still, it is investing heavily in AI to develop and train AI models for its Optimus robots and full self-driving technology. Tesla also reported a big revenue spike in its Q2 earnings, up 26% year over year to $28.23 billion. But the company’s operating margins shrank to just 1.4%, adjusted earnings of $0.33 were far below expectations, and the company reported negative free cash flow of $1.1 billion in the quarter.
Tesla’s chief financial officer, Vaibhav Taneja, told analysts that the free cash flow shortfall was because the company’s capex more than doubled sequentially in the quarter, and would continue to grow in the second half of the year and through 2028. The company projected capex of $25 billion this year and announced plans to borrow up to $30 billion.
You can guess what happened next. The market shrugged off the revenue jump and focused on the shrinking margins, negative cash flow, and borrowing plans. Tesla’s stock has fallen more than 20% since its earnings report last week.
What to expect from Amazon’s earnings reportAmazon has had an up-and-down year, and the stock is just above water so far. But it’s far from immune to the challenges facing big tech right now, and Amazon stock already dropped 5% in the last week following the Alphabet and Tesla reports.
The best thing about Amazon for the last several years has been Amazon Web Services (AWS). Amazon has the largest share of the global cloud computing market at 28%, and it's been investing heavily as companies increasingly turn to cloud environments to train and run AI programs.
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AWS generated $37.58 billion in sales in the first quarter, up 28% from a year ago. Operating income from AWS was $14.16 billion -- 59% of the entire company’s operating income.
Investors will want to see how Amazon improved, but the biggest questions will come from Amazon’s guidance, and whether the company raises its capex budget -- and by how much. CEO Andy Jassy has said Amazon will be a “meaningful leader” in AI. “We’re not investing approximately $200 billion in capex in 2026 on a hunch,” he said in April.
Tesla and Alphabet’s reports are important clues that AI spending is accelerating, not decreasing. There’s more evidence in the strong earnings reports of Taiwan Semiconductor Manufacturing, the world’s largest chip foundry, and ASML, which makes machines to create chips. Both companies recently raised their full-year guidance due to strong demand for AI infrastructure.
You also have the evidence from memory and storage companies, such as Western Digital, Sandisk, and Micron Technology, that are seeing huge increases in storage and memory products from data centers.
When you put all these data points together, you can make a reasonable hypothesis that Amazon will likely increase its capex again. Add that to another data point -- Amazon will likely see negative free cash flow (FCF) this quarter, as its trailing 12-month FCF fell to $1.2 billion in Q1, down 95% from a year ago.
Any combination of Amazon raising capex, showing negative free cash flow, or taking on new debt -- could pressure the stock. If all three happen, as they did with Tesla -- then Amazon shareholders could have a very rough day.
Amazon Leo is displayed during the Delivering the Future EMEA 2026 event at Amazon's LCY3 fulfilment centre in Dartford, Britain, June 4, 2026. REUTERS/Toby Shepheard/File Photo Purchase Licensing Rights, opens new tab
July 27 (Reuters) - Amazon's (AMZN.O), opens new tab Leo has proposed a new constellation of up to 5,105 satellites to provide direct-to-device voice and data connectivity, joining a growing race among satellite operators to beam cellular service directly to smartphones.
The proposed direct-to-device network would provide voice, messaging, data and emergency services in areas beyond the reach of terrestrial cellular networks, with deployment beginning in 2028.
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The service will partner with mobile network operators globally and use Globalstar's mobile satellite spectrum following Amazon's agreement to acquire Globalstar (GSAT.O), opens new tab earlier this year.
The move expands Amazon's satellite ambitions beyond broadband internet and intensifies competition in the direct-to-device market, with SpaceX (SPCX.O), opens new tab, AST SpaceMobile (ASTS.O), opens new tab and Lynk Global also developing satellite-to-phone services.
A growing shortage of rocket launch capacity has, however, become one of the biggest constraints to deploying a wave of next generation of satellite constellations.
Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli
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