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18h ago

Amazon Expected To Report 9.5% Q2 Revenue Gain With 17% AWS Growth

Investors will focus on whether Amazon’s cloud investments can offset retail headwinds from U.S. tariffs

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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Parcels are stored in a truck in a logistics centre of the mail order company Amazon.
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Overview

  • Analysts project Amazon will post $162.08 billion in second-quarter revenue, up 9.5% year-on-year, with AWS sales growing roughly 17%.
  • The company has accelerated data-center spending to support traditional cloud offerings and rising demand for generative AI services.
  • Amazon’s e-commerce arm has absorbed tariff costs by urging third-party sellers to pull forward inventory orders and maintain low prices.
  • Major cloud competitors are ramping up investments, highlighted by Alphabet’s new OpenAI deal and Microsoft’s Azure capacity expansions.
  • Following signs of easing trade tensions and resilient retail and cloud results, UBS, Morgan Stanley and Bank of America have raised their price targets on Amazon ahead of the earnings report.