Amazon.com (AMZN) stock has recovered from a 7% dip after Q2 earnings, with a 13% YoY revenue increase to $167.7 billion and EPS at $1.68, beating the consensus estimate. Despite concerns around slowing AWS growth and shrinking cloud margins, shares remain up 32% over the past year. Public companies and individual investors own 48.36% of AMZN, followed by mutual funds, ETFs, insiders, and other institutional investors. The stock has a Strong Buy consensus rating with an average price target of $264.21, indicating 23.61% upside potential.
Amazon.com (AMZN) stock has rebounded from a 7% dip following its Q2 earnings report, with a 13% year-over-year (YoY) revenue increase to $167.7 billion and earnings per share (EPS) at $1.68, surpassing the consensus estimate of $1.32 [1]. Despite concerns around slowing AWS growth and shrinking cloud margins, shares have remained up 32% over the past year. Public companies and individual investors own 48.36% of AMZN, followed by mutual funds, ETFs, insiders, and other institutional investors. The stock has a Strong Buy consensus rating with an average price target of $264.21, indicating a 23.61% upside potential [2].
The company's strong performance was driven by solid momentum across its North America and International segments, as well as steady growth in its Amazon Web Services (AWS) segment. Product sales and service sales increased by 10.8% and 15.1% YoY, respectively, while AWS revenues rose by 17.5% [1]. However, AWS's growth rate trails that of Microsoft's Azure (39%) and Alphabet's Google Cloud (32%) [1]. Despite maintaining market leadership, AWS faces intensifying competitive pressure.
Amazon's AI initiatives and partnerships also gained traction in Q2. The company launched several AI tools, including Kiro, Bedrock AgentCore, and S3 Vectors, and secured new agreements with major enterprises like PepsiCo, Airbnb, and Nasdaq [1]. These advancements aim to democratize AI capabilities and create competitive moats.
Operating expenses increased by 11.4% YoY, while operating income expanded by 30.7% to $19.1 billion [1]. The company's balance sheet shows cash and cash equivalents at $57.7 billion, marketable securities at $35.4 billion, and long-term debt at $52.6 billion as of June 30, 2025 [1]. Operating cash flow increased by 12% to $121.1 billion for the trailing 12 months [1].
For the third quarter, Amazon expects net sales between $174 billion and $179.5 billion, with an unfavorable impact of approximately 130 basis points from foreign exchange rates [1]. Despite the guidance, the stock has seen a rebound, with shares trading at $264.21, up 32% from the previous year [2].
References:
[1] https://www.nasdaq.com/articles/amazon-stock-falls-despite-q2-earnings-revenues-beat-estimates
[2] https://finance.yahoo.com/news/amazon-beats-q2-estimates-aws-204857158.html
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