Amazon Stock Tanks: Here’s Why Investors Are Panicking Today

Amazon shares are taking a nosedive—and the market isn’t holding its breath. Here’s the breakdown.

Earnings Miss or Macro Mess?

Wall Street’s darling just faceplanted. Whether it’s weak Q3 guidance or another ‘transitory’ inflation excuse, the algos aren’t buying it.

Retail Bleeds Into Tech

Consumer spending dips? Check. Cloud growth slows? Double-check. Suddenly, those ‘defensive’ FAANG stocks look about as sturdy as a meme coin in a bear market.

The Silver Lining Playbook

Short sellers are circling, but let’s be real—this is Amazon, not some overhyped NFT project. Then again, after the last crypto winter, maybe that’s not saying much.

Amazon's cloud business is growing, but not fast enough for some investors

Amazon's Q2 earnings report revealed the company beat consensus estimates for both earnings per share and revenue. The company delivered $1.68 per share on $167.70 billion in sales, while $1.33 per share on $162.09 billion was expected.

However, investors were paying close attention to growth in the company's data center business, Amazon Web Services (AWS), and how it compares to its competition. The 18% year-over-year growth was much less than that of's Azure or's Google Cloud, which recorded 39% and 32% growth, respectively. Still, CEO Andy Jassy drove home the point that AWS is still by far the dominant player, saying, "I think the second player is about 65% of the size of AWS."

Image source: Getty Images.

Trump's new tariffs

President TRUMP signed an executive order updating "reciprocal" tariff rates for many countries, with new rates from 10% to 41%, on the August 1st deadline. Markets appear to have thought another extension would be announced, and stocks are down across the board. Because of Amazon's reliance on international trade, its stock was hit particularly hard.

Despite the tariff news and the somewhat underwhelming Q2 report, Amazon remains an incredibly profitable company with major growth potential.