Amazon's 0.37% Gain Amid 24.69% Volume Drop Lands 7th in Liquidity Rankings

On August 7, 2025, Amazon (AMZN) closed with a 0.37% gain, trading with a daily volume of $9.06 billion—a 24.69% decline from the prior day’s activity and ranking seventh in market liquidity. The stock’s performance followed mixed signals from its recent earnings report, which highlighted growth in core e-commerce and cloud segments but raised concerns over AWS’s slower expansion compared to peers.

Analysts noted that Amazon’s second-quarter revenue of $167.7 billion exceeded expectations by $5.6 billion, with earnings per share rising 33% to $1.68. However, the stock faced downward pressure after the company guided for a modest 3% year-over-year operating income increase in Q3. The guidance contrasted with stronger-than-expected results from Microsoft and Alphabet, whose cloud divisions posted revenue growth rates of 39% and 32%, respectively, fueling speculation about AWS’s competitive positioning in the AI-driven cloud market.

Despite the sell-off, some observers argue the market has overcorrected. Amazon’s AWS segment still grew 18% year-over-year, slightly outpacing its prior quarter’s performance. The stock’s current valuation of 33 times earnings is seen as a rare entry point for long-term investors, given the company’s dual-engine business model combining e-commerce and cloud computing. However, risks remain tied to AI adoption rates and potential margin pressures in the sector.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets.