Evolving Amazon's Narrative Is Non-Negotiable (Earnings Preview)

Core Viewpoint - Amazon's Q2 2025 earnings are expected to exceed expectations due to the success of its recent Prime Day, which is estimated to have generated significant spending over a four-day period [1]. Financial Performance - The company is anticipated to demonstrate sustained profitability characterized by strong margins, stable and expanding free cash flow, and high returns on invested capital [1]. Investment Strategy - The focus is on identifying undervalued stocks and high-quality dividend growers that provide reliable cash flow for reinvestment, emphasizing the importance of profitability over mere valuation [1].