Core Insights - Amazon reported stronger-than-expected second-quarter 2025 results, surpassing earnings and revenue estimates, but provided a cautious third-quarter operating income guidance, leading to an over 8% drop in pre-market trading [1][3][6] Financial Performance - Earnings per share for Amazon were $1.68, exceeding the Zacks Consensus Estimate of $1.33 and up from $1.23 year-over-year [3] - Revenues increased by 13% year-over-year to $167.7 billion, surpassing the consensus estimate of $162.3 billion [3] - Amazon's advertising business was the fastest-growing division, with ad revenues rising 23% year-over-year to $15.69 billion [4] - Online store sales grew 11% to $61.48 billion, while Amazon Web Services (AWS) revenues increased 17.5% year-over-year to $30.9 billion [4] Future Guidance - For the third quarter of 2025, Amazon expects revenues between $174 billion and $179.5 billion, with a Zacks Consensus Estimate of $173.13 billion [6] - The company anticipates operating income of $15.5 billion to $20.5 billion for the third quarter, which is below analysts' expectations [6] Investment in AI - Amazon has committed to spending up to $100 billion this year on artificial intelligence, focusing on building data centers and software, as well as investing in its own computer chips and those developed by NVIDIA [5] ETFs Exposure - Several ETFs with significant allocations to Amazon include: - Global X PureCap MSCI Consumer Discretionary ETF (GXPD) with 38.3% allocation to Amazon [2][7] - Fidelity MSCI Consumer Discretionary Index ETF (FDIS) with 24.2% allocation [2][8] - ProShares Online Retail ETF (ONLN) with 24% allocation [2][9] - Vanguard Consumer Discretionary ETF (VCR) with 23.9% allocation [2][11] - Consumer Discretionary Select Sector SPDR Fund (XLY) with 24.4% allocation [2][12]
Amazon Q2 Earnings Beat Estimates, Shares Dip: ETFs in Focus