Amazon Q2 Revenue Surges, CEO Cautions on Tariff Impact

Amazon reported strong second-quarter earnings with revenue of $167.7 billion and profit of $18.2 billion, surpassing analyst expectations, driven by growth in North American and international sales as well as its AWS cloud division. Despite robust results, Amazon's stock declined sharply due to cautious guidance on third-quarter operating income and ongoing uncertainty over the impact of tariffs, particularly those imposed by the Trump administration, which CEO Andy Jassy described as unpredictable. Amazon's significant investments in AI infrastructure, including a projected $100 billion spend in 2025, exceeded analyst expectations but raised concerns about near-term cash flow and margin pressures. Jassy highlighted the expansion of Amazon’s online perishables sales, noting strong customer adoption and repeat usage during the year. While Amazon continues to lead in cloud computing, Jassy acknowledged competition from Microsoft but characterized recent cloud growth figures as temporary snapshots. The company remains uncertain about who will bear the increased costs from tariffs and how they might affect retail prices and consumption moving forward.