Amazon Stock Dip: Buying Opportunity or Cautionary Tale?
Amazon's second-quarter earnings outperformed expectations, but cautious guidance triggered an 8% stock plunge. The decline erased year-to-date gains, leaving investors questioning whether this represents a strategic entry point or signals deeper challenges.
Cloud computing division AWS remains Amazon's profit engine, posting $30.9 billion revenue (17.5% growth) and $10.2 billion operating income. While maintaining cloud market leadership, Amazon faces capacity constraints affecting the entire sector. The company touts its custom AI chips' price-performance advantage as it pivots toward AI agent development with its new Strands framework.