AMZN Stock Soars 12% in Pre-Market Trading After Blowout Q2 Results as Analyst Says Amazon Is Already ‘Monetizing’ Its AI Investments

Amazon.com, Inc. (NASDAQ:AMZN) shares surged over 12% in Friday’s pre-market trading after the e-commerce and cloud-computing giant reported stronger-than-expected second-quarter results.

Amazon Beats Revenue and Earnings Estimates

Amazon reported second-quarter revenue of $200.61 billion, exceeding Wall Street’s consensus estimate of $196.46 billion. The company posted earnings of $5.75 per share, well above analysts’ expectations of $1.82 per share.

Amazon’s cloud division, Amazon Web Services, generated $42.2 billion in revenue, representing 36.7% year-over-year growth. The company said AWS recorded its fastest growth rate in 18 quarters.

Amazon also said its AI and custom-chip businesses had each surpassed annualized revenue run rates exceeding $25 billion, highlighting the growing commercial impact of its investments in artificial intelligence infrastructure.

Chris Ballard Calls AWS Amazon’s ‘Crown Jewel’

In an emailed statement to Benzinga, Chris Ballard, managing director at Check Capital Management, described the results as “an emphatic answer to skepticism,” pointing to the sharp acceleration in AWS growth.

“The headline story is the dramatic reacceleration of Amazon Web Services,” Ballard said, calling AWS Amazon’s “crown jewel” and adding that he was “very happy” with its performance.

Ballard said Amazon’s substantial infrastructure spending is increasingly translating into revenue growth rather than remaining solely a long-term investment.

“Amazon isn’t just spending on AI for tomorrow — it is monetizing it today,” he said.

Advertising and Operating Profit Add to Amazon’s Strength

Amazon’s total operating income climbed 43% to $27.5 billion, while its high-margin advertising business grew 26%, providing additional support for profitability.

Looking ahead, Amazon forecasts third-quarter revenue of $197 billion to $202 billion, below analysts’ estimate of $204.08 billion. The company expects operating income of $22.5 billion to $26.5 billion, compared with $17.4 billion in the year-ago quarter.

Price Action: In pre-market trading on Friday, Amazon shares rose 11.34% to $262.20, according to Benzinga Pro.

Benzinga Edge Rankings place Amazon in the 95th percentile for Growth, although the stock continues to show a negative price trend across the short-, medium- and long-term time frames.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.