Core Insights - Amazon's CEO Andy Jassy sees potential in delivering ads through the AI-powered digital assistant Alexa+, aiming to enhance user engagement and drive revenue [1][2][9] Group 1: Alexa+ Development and Features - Alexa+ has been rolled out to millions of customers, enhancing the legacy digital assistant with more natural conversational capabilities [2] - The service is free for Prime customers and has a standalone subscription tier priced at $20 per month, with potential for additional subscription options in the future [3] - Early reviews of Alexa+ have been mixed, with challenges in shipping complex features and a slower rollout than anticipated [8] Group 2: Advertising Opportunities - Jassy suggests that as users engage in multi-turn conversations, there will be opportunities for advertising to assist in product discovery and revenue generation [2][4] - Amazon's advertising revenue increased by 22% in the second quarter compared to the previous year, indicating a growing focus on this revenue stream [9] Group 3: Competitive Landscape - Competitors like Google and OpenAI are also exploring advertising models within their AI products, suggesting a broader industry trend towards integrating ads in generative AI [5] Group 4: Investment in AI - Amazon's capital expenditures rose to $31.4 billion in the second quarter of 2025, a 90% increase year-over-year, primarily for developing in-house AI chips and expanding data centers [7] Group 5: Challenges and Considerations - There are concerns regarding the accuracy of AI-generated ads, as Alexa+ may produce false advertising, necessitating safeguards before advertisers commit [9] - Privacy concerns may arise from the increased data collection during conversations with AI chatbots, which could affect user comfort with targeted advertising [10]

A huge e-commerce event, more than 1 million robots, various AI-related features, high viewership for the NASCAR Cup on its streaming service, and advances in its satellite Internet project. That's not all, but these are factors present in Equity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collabora ...

We're going to take a look at the streaming side of the business. And that brings us to a look back at this day in history, all the way back to 1928, when MGM's Leo the Lion roared for the first time. The mascot for the pioneering Hollywood studio traces its roots all the way back to 1924 and the three way merger of Marcus Lowe's Metro Films, combined with a studio run by Samuel Goldwyn and a separate company run by the Hollywood legend Louis B mayer Metro Golden Mayor would make a mark instantly.More than ...

Core Insights - Amazon reported $167.7 billion in revenue for Q2 2025, a 13.3% year-over-year increase, with an EPS of $1.68 compared to $1.23 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] - The company demonstrated strong performance across various segments, with notable year-over-year growth in subscription services, AWS, and advertising services [4] Financial Performance - Revenue of $167.7 billion, surpassing the Zacks Consensus Estimate of $162.31 billion by 3.32% [1] - EPS of $1.68, exceeding the consensus estimate of $1.33 by 26.32% [1] - Year-over-year revenue growth of 13.3% [1] Segment Performance - Subscription services: $12.21 billion, up 12.4% year-over-year, exceeding the average estimate of $11.91 billion [4] - AWS: $30.87 billion, a 17.5% increase year-over-year, compared to the average estimate of $30.66 billion [4] - Advertising services: $15.69 billion, a 22.9% year-over-year increase, surpassing the average estimate of $14.9 billion [4] - Third-party seller services: $40.35 billion, an 11.5% increase year-over-year, exceeding the average estimate of $38.93 billion [4] - International sales: $36.76 billion, a 16.1% increase year-over-year, compared to the average estimate of $33.87 billion [4] - North America sales: $100.07 billion, an 11.2% increase year-over-year, exceeding the average estimate of $97.82 billion [4] Stock Performance - Amazon shares returned +4.7% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Amazon's third-quarter sales forecast exceeds market estimates, but its Amazon Web Services (AWS) performance falls short compared to competitors [1][3] - AWS revenue grew by 17.5% to $30.9 billion, but this growth rate is significantly lower than Microsoft's Azure (39%) and Google Cloud (32%) [3][5] - AWS profit margins contracted to 32.9% in Q2, down from 39.5% in Q1 and 35.5% a year ago, marking the lowest level since Q4 2023 [2] Sales and Revenue - Amazon expects total net sales for Q3 to be between $174.0 billion and $179.5 billion, surpassing analysts' average estimate of $173.08 billion [3] - Online store sales reached $61.5 billion, reflecting an 11% increase, while advertising sales grew by 23% to $15.7 billion [8][13] Competitive Landscape - AWS's growth of 17% is viewed as disappointing, with analysts suggesting that if Microsoft Azure continues its current growth trajectory, it may surpass AWS as the largest cloud provider by the end of next year [3] - Competitors like Microsoft and Alphabet have reported strong demand for their cloud services, leading to increased capital spending despite facing capacity constraints [4] Operational Challenges - Analysts express concerns over AWS's lack of a strong AI model, suggesting that Amazon may be lagging behind rivals in AI development [7] - Amazon has been reducing its workforce, with a total headcount decrease of 14,000 workers from Q1, now totaling 1.46 million [12]

Amazon said Thursday (July 31) that it won a lawsuit enabling it to shut down a network that marketed fake reviews and fake Amazon seller accounts. By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions . Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required. Amazon said in O ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q2 2025 reflect significant growth in revenue and net income, with total assets increasing to $682.2 billion, driven by investments and changes in accounting estimates for server useful lives [Consolidated Statements of Cash Flows](index=3&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities increased to $49.5 billion, while net cash used in investing activities significantly rose to $69.2 billion, primarily due to increased property and equipment purchases Cash Flow Summary (Six Months Ended June 30) | Metric | 2024 (in millions) | 2025 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Net cash from operating activities** | $44,270 | $49,530 | +11.9% | | **Net cash used in investing activities** | $(40,000) | $(69,227) | +73.1% | | *Purchases of property and equipment* | *$(32,545)* | *$(57,202)* | *+75.8%* | | **Net cash used in financing activities** | $(5,746) | $(2,586) | -54.9% | | **Cash, cash equivalents, and restricted cash, end of period** | $71,673 | $61,453 | -14.3% | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total net sales increased 13.3% to $167.7 billion, with operating income growing to $19.2 billion and net income rising significantly to $18.2 billion, or $1.68 per diluted share Q2 Financial Performance (Three Months Ended June 30) | Metric | 2024 (in millions) | 2025 (in millions) | YoY Growth | | :--- | :--- | :--- | :--- | | Total Net Sales | $147,977 | $167,702 | 13.3% | | Operating Income | $14,672 | $19,171 | 30.7% | | Net Income | $13,485 | $18,164 | 34.7% | | Diluted EPS | $1.26 | $1.68 | 33.3% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q2 2025 increased to $21.5 billion, driven by higher net income and a significant positive impact from foreign currency translation adjustments - Foreign currency translation adjustments were a major driver of the difference between net income and comprehensive income, contributing a **positive $3.3 billion** in Q2 2025 versus a **negative $637 million** in Q2 2024[15](index=15&type=chunk) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets reached $682.2 billion, primarily due to a significant rise in net property and equipment, while total stockholders' equity grew to $333.8 billion Balance Sheet Summary (in millions) | Account | Dec 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | **Total Assets** | **$624,894** | **$682,170** | | Cash and cash equivalents | $78,779 | $57,741 | | Property and equipment, net | $252,665 | $297,616 | | **Total Liabilities** | **$338,924** | **$348,395** | | Long-term debt | $52,623 | $50,718 | | **Total Stockholders' Equity** | **$285,970** | **$333,775** | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, including a change in server useful lives due to AI development, a significant gain from the Anthropic investment, and substantial AWS performance obligations, alongside tax impacts and segment performance breakdowns - Effective January 1, 2025, the company shortened the estimated useful lives of a subset of servers and networking equipment from six to five years due to the increased pace of AI and machine learning development, increasing Q2 2025 depreciation expense by **$280 million**, primarily impacting the AWS segment[23](index=23&type=chunk) - A portion of the company's convertible notes in Anthropic converted to nonvoting preferred stock in Q1 2025, resulting in the recognition of a **$3.3 billion gain** in "Other income (expense), net" for the six months ended June 30, 2025[27](index=27&type=chunk)[42](index=42&type=chunk) - As of June 30, 2025, AWS had approximately **$195 billion** in performance obligations from customer contracts for future services that have not yet been recognized as revenue, with a weighted-average remaining life of **4.0 years**[32](index=32&type=chunk) - The "One Big Beautiful Bill Act of 2025" is expected to significantly decrease U.S. cash taxes in 2025 by reinstating **100% accelerated depreciation** and immediate expensing of domestic R&D costs[81](index=81&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2025's 13% consolidated sales growth and increased operating income to strong segment performance and AWS usage, with significant capital expenditures for infrastructure and robust liquidity, while providing Q3 2025 guidance - Cash capital expenditures were **$31.4 billion** in Q2 2025, a significant increase from **$16.4 billion** in Q2 2024, primarily reflecting investments in technology infrastructure to support AWS business growth[111](index=111&type=chunk) - The company invested an additional **$1.3 billion** in convertible notes from Anthropic in Q2 2025 and plans to invest another **$1.4 billion** by Q4 2025[111](index=111&type=chunk) Q3 2025 Guidance | Metric | Guidance | | :--- | :--- | | Net Sales | $174.0B - $179.5B (10% - 13% growth) | | Operating Income | $15.5B - $20.5B | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) In Q2 2025, consolidated net sales grew 13% to $167.7 billion, with all segments showing improved profitability and operating income increasing to $19.2 billion, driven by higher unit sales and AWS customer usage Q2 2025 Net Sales by Segment (in millions) | Segment | Q2 2024 | Q2 2025 | YoY Growth | YoY Growth (ex-FX) | | :--- | :--- | :--- | :--- | :--- | | North America | $90,033 | $100,068 | 11% | 11% | | International | $31,663 | $36,761 | 16% | 11% | | AWS | $26,281 | $30,873 | 17% | 17% | | **Consolidated** | **$147,977** | **$167,702** | **13%** | **12%** | Q2 2025 Operating Income by Segment (in millions) | Segment | Q2 2024 | Q2 2025 | Change | | :--- | :--- | :--- | :--- | | North America | $5,065 | $7,517 | +$2,452 | | International | $273 | $1,494 | +$1,221 | | AWS | $9,334 | $10,160 | +$826 | | **Consolidated** | **$14,672** | **$19,171** | **+$4,499** | - Technology and infrastructure costs increased **22% YoY** in Q2 2025, primarily due to higher spending on infrastructure, including depreciation, to support AWS and other initiatives[124](index=124&type=chunk)[133](index=133&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $93.2 billion in cash and marketable securities, supported by increased operating cash flow and significant capital expenditures for AWS infrastructure Trailing Twelve Months (TTM) Cash Flows (ended June 30) | Metric | 2024 (in millions) | 2025 (in millions) | | :--- | :--- | :--- | | Net cash from operating activities | $107,952 | $121,137 | | Purchases of property and equipment, net | $(54,979) | $(102,953) | | **Free cash flow** | **$52,973** | **$18,184** | - The company increased the size of its Commercial Paper Programs from **$20.0 billion** to **$30.0 billion** in April 2025, though no borrowings were outstanding as of June 30, 2025[66](index=66&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate changes, foreign currency fluctuations, and investment valuations, with significant exposure to foreign exchange rates and volatility in its **$23.2 billion** equity and convertible debt portfolio - As of June 30, 2025, the company held **$19.9 billion** in foreign-denominated funds, where a hypothetical **10% adverse change** in foreign exchange rates would result in a decline of **$2.0 billion**[156](index=156&type=chunk) - The company holds **$23.2 billion** in equity, equity warrant, and convertible debt investments in public and private companies as of June 30, 2025, with significant holdings in Rivian and Anthropic, exposing it to equity market volatility and valuation risk[158](index=158&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) The principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of quarter-end, with no material changes to internal control over financial reporting identified - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[159](index=159&type=chunk) - No changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, internal controls were identified during the quarter[160](index=160&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various claims and litigation, notably two patent infringement complaints filed in June 2025 by Xockets, Inc. against Amazon and AWS concerning the AWS Nitro System, which Amazon intends to vigorously defend - In June 2025, Xockets, Inc. filed two complaints against Amazon and AWS, alleging that certain versions of the AWS Nitro System infringe on multiple U.S. patents[56](index=56&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from intense competition, operational challenges in managing its vast networks, data security threats, and evolving legal and regulatory landscapes, including antitrust and tax liabilities - The company faces intense and increasing competition, including from new business models and well-funded competitors, particularly with the advancement of AI and machine learning[165](index=165&type=chunk)[166](index=166&type=chunk) - Operational risks include failures to optimize the fulfillment and data center networks, which can lead to excess or insufficient capacity, and reliance on a limited number of shipping companies[186](index=186&type=chunk)[190](index=190&type=chunk) - The company is subject to numerous government investigations and litigation concerning competition, consumer protection, and data privacy, including open investigations into its retail store operations and AWS cloud services[210](index=210&type=chunk)[211](index=211&type=chunk) - An increasing number of jurisdictions are adopting new tax measures targeting online commerce, including revenue-based taxes and new collection obligations, which could adversely affect results[214](index=214&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period - None[219](index=219&type=chunk) [Other Information](index=51&type=section&id=Item%205.%20Other%20Information) In May 2025, two senior executives, Matthew S. Garman (AWS CEO) and Brian T. Olsavsky (SVP and CFO), adopted Rule 10b5-1(c) trading plans to sell company stock over specified periods ending in 2026 - AWS CEO Matthew S. Garman and CFO Brian T. Olsavsky adopted Rule 10b5-1(c) trading plans in May 2025 to sell shares of company stock[222](index=222&type=chunk)[223](index=223&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, CEO and CFO certifications, and financial statements formatted in Inline XBRL [Signatures](index=53&type=section&id=Signatures) The report is duly signed on July 31, 2025, on behalf of the registrant by Shelley L. Reynolds, Vice President, Worldwide Controller, and Principal Accounting Officer

Amazon (AMZN) came out with quarterly earnings of $1.68 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +26.32%. A quarter ago, it was expected that this online retailer would post earnings of $1.35 per share when it actually produced earnings of $1.59, delivering a surprise of +17.78%.Over the last four quarters, the company ...

Financial Data and Key Metrics Changes - The company reported revenue of $167.7 billion, a 12% increase year over year, excluding foreign exchange impacts [6][29] - Operating income was $19.2 billion, up 31% year over year, exceeding guidance by $1.7 billion [6][30] - Trailing twelve-month free cash flow was $18.2 billion [6] Business Line Data and Key Metrics Changes - North America segment revenue was $100.1 billion, an 11% increase year over year [30] - International segment revenue was $36.8 billion, also an 11% increase year over year, excluding foreign exchange impacts [30] - Worldwide paid units grew by 12% year over year, with third-party seller unit mix reaching 62%, the highest ever [31][32] Market Data and Key Metrics Changes - The company saw strong customer adoption of perishables, with 75% of users being first-time shoppers for perishables on Amazon [8] - The recent Prime Day event was the largest ever, with record sales and Prime sign-ups [9] Company Strategy and Development Direction - The company is focused on improving delivery speed and efficiency, with a 40% increase in orders moving through direct lanes year over year [11] - Investments in robotics and automation are aimed at enhancing cost efficiencies and customer experiences [13][14] - The advertising segment generated $15.7 billion in revenue, growing 22% year over year, indicating a strong performance in connecting brands with customers [15][36] Management Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the impact of tariffs on pricing and demand but noted no significant demand decline in the first half of the year [10][45] - AWS grew 17.5% year over year, with a focus on generative AI and cloud transition for organizations [18][37] - The company anticipates continued growth in AWS, driven by demand for AI services and infrastructure modernization [85] Other Important Information - The company is expanding same-day and next-day delivery services to more rural communities [12] - Project Kuiper aims to address broadband connectivity for underserved households, with significant enterprise and government interest already [26][70] Q&A Session Summary Question: Can you elaborate on how tariffs are being absorbed across suppliers, Amazon, and consumers? - Management indicated uncertainty about future tariff impacts and noted that demand has not diminished in the first half of the year [44][45] Question: Regarding AWS, what are the reasons for the growth gap compared to competitors? - Management highlighted AWS's significant market leadership and emphasized the importance of customer experience and operational performance [46][49] Question: What is the backlog number for AWS? - The backlog at the end of the quarter was $195 billion, up 25% year over year [53] Question: What is the status of Project Kuiper and its launch timeline? - Project Kuiper is expected to launch commercially later this year or early next year, with strong interest from enterprises and governments [70] Question: How does the company view the potential of Alexa Plus in terms of engagement and revenue? - Management expressed optimism about Alexa Plus's capabilities and its potential to drive increased engagement and revenue through enhanced user experiences [60]

Core Insights - The company, TQI, aims to assist investors in navigating the current asset bubble profitably [1] - TQI was established in July 2022 with a mission to simplify and enhance the investing experience for all [2] Company Offerings - TQI publishes premium equity research reports on Seeking Alpha, providing a research library and performance tracker [2] - The company offers highly-concentrated, risk-optimized model portfolios tailored to different stages of the investor lifecycle [2] - TQI provides access to proprietary software tools and group chats to enhance investor engagement and support [2] Communication Channels - TQI shares investing insights through various platforms, including a free newsletter, Twitter, and LinkedIn [2] - The company emphasizes the importance of community and active engagement in the investment process [2]