Amazon (AMZN) shares tumbled in extended trading Thursday, despite better-than-projected earnings and growth in its Amazon Web Services. Investors may have been looking for more in the wake of Microsoft’s blowout results.
Amazon posted second-quarter revenue of $167.7 billion, up 13% year-over-year and above the analyst consensus from Visible Alpha. The e-commerce and cloud services giant’s net income of $18.2 billion, or $1.68 per share, compared to $13.5 billion, or $1.26 per share, a year earlier, topping Wall Street’s estimates.
Online store sales grew 11% to $61.49 billion, while revenue from Amazon Web Services revenue increased 18% to $30.9 billion, also above projections.
“Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth, and I’m excited for what lies ahead,” CEO Andy Jassy said.
However, investors may have wanted more from the cloud services giant after strong results from Microsoft’s Azure yesterday. Jefferies analysts said in a note Thursday that AWS growth was “disappointing given big momentum at Azure and GCP.”
Looking ahead, Amazon forecast third-quarter revenue of $174 billion to $179.5 billion, above the $173.17 billion analysts surveyed by Visible Alpha called for. Its outlook for operating income between $15.5 billion and $20.5 billion was slightly ahead of the analyst consensus at the midpoint.
Shares of Amazon dropped over 7% in after-hours trading. The stock was up 7% for 2025 through Thursday’s close.
