Amazon Q2 Earnings: AI-Driven Growth Clashes with Cash Flow Concerns

Amazon's stock swung dramatically after hours despite posting a 13% revenue surge in Q2 2025. The tech giant closed regular trading at $234.11, only to plummet 5.17% post-market as investors fixated on deteriorating free cash FLOW metrics.

AWS emerged as the standout performer with $30.9 billion in revenue—a 17.5% year-over-year leap—while record Prime Day sales underscored Amazon's retail dominance. The cloud division's $10.2 billion operating income nearly eclipsed North America's $7.5 billion, revealing the accelerating enterprise shift toward AI infrastructure.

Market participants appear torn between Amazon's growth trajectory and balance sheet realities. The same AI investments fueling AWS's expansion are consuming capital at a pace that unsettled after-hours traders, creating a valuation paradox for the e-commerce behemoth.