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Amazon Beats Q2 Estimates With Strong Sales and AI Spending

Management projected third-quarter sales above analysts' forecasts following double-digit growth in cloud, retail, advertising units.

Amazon CEO Andy Jassy.
The logo of giant online retailer Amazon AMZN.O is displayed at a logistics centre in Trapagaran, Spain, December 18, 2023. REUTERS/Vincent West/File photo
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Overview

  • Amazon reported second-quarter revenue of $167.7 billion and earnings per share of $1.68, topping analyst expectations of $162 billion and $1.33.
  • AWS revenue climbed 18% to $30.87 billion, sustaining its lead in cloud infrastructure despite intensifying competition and capacity constraints.
  • Online store sales rose 11% to $61.4 billion, with CEO Andy Jassy noting that U.S. tariffs have not dented consumer demand or forced price increases.
  • Advertising revenue surged 23% to $15.6 billion as brands allocate more performance-marketing budgets to Amazon’s platform.
  • Amazon forecast third-quarter net sales between $174 billion and $179.5 billion and reaffirmed plans for up to $100 billion in 2025 capital expenditures for AI infrastructure.