Overview

• Amazon reported Q2 revenue of $167.7 billion, up 13%, and earnings per share of $1.68, both beating analysts’ estimates.
• AWS revenue grew 17.5% to $30.9 billion, trailing Microsoft Azure’s 26% and Google Cloud’s 32% expansion.
• AWS operating margin fell to 32.9% from 39.5% as aggressive generative AI investments and capacity constraints weighed on profitability.
• Capital expenditures hit a record $31.4 billion, an 89% year-over-year surge driven largely by new AI servers, chips and data centers.
• Analysts are split over whether the share pullback represents a buying opportunity or a warning sign of delayed returns from Amazon’s heavy AI investment.