Amazon Stock: Headed to $300?

Core Insights - Amazon has shown consistent performance in 2025, with ongoing discussions about the impact of artificial intelligence on its financials [1] - The company is focusing on its most profitable segments, which, along with effective cost management, positions it for healthy earnings growth [2] Financial Performance - In Q2, Amazon's net sales increased by 13% year-over-year to $167.7 billion, while operating income rose by 31% to $19.2 billion [4] - AWS revenue grew by 17.5% to $30.9 billion, and advertising services increased by 23% to $15.7 billion, both exceeding overall growth and contributing higher margins [4][5] - The earnings per share improved to $6.55 from $4.18 year-over-year, reflecting enhanced earnings power [5] Business Segments - AWS accounted for approximately 18% of total revenue, while advertising services made up over 9%, indicating a shift towards higher-margin business areas [5] - AWS has an operating margin of about 37%, significantly higher than the overall company's margin of around 11% [6] Future Guidance - For Q3, Amazon anticipates revenue between $174 billion and $179.5 billion, representing a year-over-year increase of 10% to 13%, with operating income projected between $15.5 billion and $20.5 billion [7] - The guidance suggests improved operational efficiency compared to two years ago, supporting steady revenue and earnings growth [7][8]