Amazon Beat Earnings Expectations—But the Stock Still Fell
Amazon reported strong earnings for the second quarter, but its stock still dropped more than 7% in after-hours trading on Thursday.
Here’s what happened:
Amazon made $167.7 billion in revenue during the quarter. That’s 13% more than last year and better than what Wall Street expected.
Its profit was $18.2 billion, or $1.68 per share. That’s also higher than expected and up from $13.5 billion, or $1.26 per share, a year ago.
Online sales went up 11% to $61.49 billion.
Amazon Web Services (AWS), the company’s cloud business, brought in $30.9 billion—a solid 18% increase
Even though the numbers were good, investors were expecting more—especially from AWS. Microsoft’s Azure just posted very strong results, and that raised the bar. Some analysts, like those at Jefferies, said AWS growth was “disappointing” when compared to Azure and Google Cloud.
Looking ahead:
Amazon expects third-quarter revenue between $174 billion and $179.5 billion. That’s better than analysts were predicting. It also expects operating income to be slightly above expectations.
Still, despite all the positive numbers, investors were hoping for a bigger performance from Amazon’s cloud division—so the stock took a hit.
Before the earnings report, Amazon shares were up 7% in 2025