Amazon Surpasses Earnings Expectations in Q2; Stock Rises Over 8% After Hours
On July 30, Amazon (NASDAQ: AMZN) reported better-than-expected second-quarter earnings and saw its stock rise over 8% after hours. The company's revenue grew by 20% year-on-year to $200.61 billion, driven largely by strong performance in its cloud services division, Amazon Web Services (AWS). This positive result helped reassure investors about the firm’s high capital expenditures and ongoing AI investments. The broader market also saw gains on the day: The S&P 500 rose 1.66%, while the Nasdaq Composite climbed 2.78%. In contrast, retail peers like Walmart (NASDAQ: WMT) and Costco Wholesale (NASDAQ: COST) declined by over 2% each. Amazon is one of several major tech firms in the Magnificent Seven to report earnings this week, with AI spending being a key focus for investors. While Amazon’s free cash flow was negative at $7.6 billion year-to-date, its AWS growth and early returns on AI investments are seen as positive long-term indicators.
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Topics: AI cloud services Amazon AWS Nasdaq Composite S&P 500