Amazon Stock Surges 1.08% on Strong Earnings but Cautious Outlook Trading Volume Ranks 7th with 59.75% Surge as Ackman Backs AI-Driven Bet

On August 28, 2025, Amazon (AMZN) closed with a 1.08% gain, with a trading volume of $7.78 billion, up 59.75% from the previous day, ranking seventh in market activity. The stock’s performance followed mixed signals from recent corporate updates and broader market trends.

Amazon’s Q2 earnings report, released the prior day, showed robust sales of $167.7 billion and earnings per share of $1.68, surpassing analyst expectations. However, investors reacted cautiously to the company’s softer profit forecast, citing elevated AI infrastructure spending as a drag on margins. The broader market also faced downward pressure after weaker-than-expected U.S. jobs data, contributing to a 2.1% decline in the Nasdaq Composite and a 1.6% drop in the S&P 500. Analysts noted that Amazon’s long-term growth potential remains intact, with Q3 guidance indicating $174 billion to $179.5 billion in revenue and operating income of $15.5 billion to $20.5 billion.

Billionaire investor Bill Ackman’s Pershing Square Capital Management added Amazon to its portfolio, signaling confidence in the company’s AI-driven transformation. Ackman’s firm, known for concentrated bets, positioned Amazon alongside its existing stake in Alphabet. The investment underscores Amazon’s strategic shift into AI infrastructure, including AWS advancements, custom chip development, and automation in logistics. These moves are seen as critical for sustaining long-term value creation amid competitive pressures in the tech sector.

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