Amazon Q2 Earnings: AWS Revenue Beats but Profit Miss Sparks 7.7% Stock Drop
Amazon Web Services delivered $30.87 billion in Q2 revenue, an 18% year-over-year increase that narrowly surpassed analyst expectations. The cloud division's performance underscores its continued dominance in a sector where it competes with Microsoft Azure and Google Cloud.
Despite the revenue beat, operating income of $10.2 billion fell short of the $10.9 billion consensus, triggering a 7.7% selloff in AMZN shares. The stock closed at $216.07 Friday as investors weighed margin pressures against growth prospects.
Competition intensifies as Microsoft and Google post faster cloud growth rates of 39% and 32% respectively. Enterprise AI adoption is driving infrastructure demand across all major providers, but Amazon's capital investments appear to be weighing on profitability in the near term.