Core Viewpoint - Amazon's Q2 performance showed mixed results, with revenue exceeding expectations but AWS growth lagging behind competitors, leading to a significant drop in stock price after the earnings announcement [1][3][15] Financial Performance - Amazon reported Q2 revenue of $167.70 billion, a 13% year-over-year increase, slightly above market expectations of $162.15 billion [3] - Net profit for the quarter was $18.16 billion, up 35% year-over-year, surpassing the expected $14.26 billion [3] - Adjusted earnings per share were $1.68, exceeding the forecast of $1.33 and up from $1.26 in the same quarter last year [3] AWS Performance - AWS revenue for Q2 was $30.87 billion, a 17% year-over-year increase, slightly above the expected $30.80 billion [5] - AWS's operating profit margin fell to 32.9%, down from 39.5% in Q1 and 35.5% in the same quarter last year, marking the lowest level since Q4 2023 [5] - Analysts expressed disappointment with AWS's growth compared to Microsoft Azure and Google Cloud, which reported growth rates of 39% and 32%, respectively [8] Business Segments - Amazon's online store revenue reached $61.49 billion, an 11% year-over-year increase, slightly above expectations [15] - Third-party seller services generated $40.35 billion, also an 11% increase, exceeding market expectations [9] - Advertising services revenue was $15.69 billion, up 17% year-over-year, surpassing the forecast [10] - Subscription services revenue reached $12.21 billion, a 12% increase, slightly above expectations [11] Future Guidance - For Q3, Amazon expects revenue between $174 billion and $179.5 billion, representing a year-over-year growth of approximately 10% to 13%, higher than analyst expectations of $173.2 billion [15] - Projected operating profit for Q3 is between $15.5 billion and $20.5 billion, below the analyst forecast of $19.4 billion [15] - Amazon's capital expenditures in Q2 reached a record $31.4 billion, significantly above the expected $26 billion, with a full-year forecast of $110 billion to $120 billion [15]