Amazon’s (AMZN) stock is down 8% after the e-commerce giant issued disappointing forward guidance as part of its second-quarter financial results.
The Seattle-based company’s gloomy outlook overshadowed what was otherwise a strong print.
Amazon announced earnings per share (EPS) of $1.68 U.S., which was ahead of the $1.33 U.S. expected among analysts.
Revenue in the quarter of $167.7 billion U.S. topped Wall Street forecasts of $162.09 billion U.S. Sales grew 13% from a year earlier.
Among key business units, Amazon Web Services (AWS), the company’s cloud division, reported sales of $30.87 billion U.S. versus $30.80 billion U.S. that was expected.
The cloud unit saw its revenue rise 18% from a year ago.
Advertising revenue in the period totaled $15.70 billion U.S. compared to $14.90 billion U.S.
Despite the strong showing, Amazon gave a gloomy outlook for the current quarter, sending its share price down in after hours trading.
For the current third quarter of the year, Amazon said it expects operating income of $15.5 billion U.S. to $20.5 billion U.S. Wall Street had $19.48 billion U.S. penciled in for the company.
Revenue in the third quarter is forecast to be between $174 billion U.S. and $179.5 billion U.S., representing growth of 10% to 13% year over year.
Analysts had forecast Q3 sales of $173.1 billion U.S.
For the second consecutive quarter, Amazon included “recessionary fears” along with “tariff and trade policies” as factors that could impact its guidance and future financial results.
The outlook appears to have rattled investors who are eager to see Amazon’s investments in artificial intelligence (A.I.) pay off.
The company has committed to spend up to $100 billion U.S. this year on A.I. as it builds out data centres and software.
“Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth,” said Amazon CEO Andy Jassy in the company’s earnings release.
Prior to today (Aug. 1), Amazon’s stock had risen 6% in 2025 to trade at $234.11 U.S. per share.
Tech Insider
