Amazon beat Wall Street expectations in Q2 with net sales of $200.6 billion, up 20% year over year, while operating income jumped 43% to $27.5 billion. Shares closed at $235.50, up 3.90%, then climbed a further 8.85% in after-hours trading. AWS delivered 36.7% growth, its fastest pace since 2021, with operating income surging 64% to $16.6 billion, validating Amazon’s massive AI bet. Capex reached $169 billion over twelve months, pushing free cash flow to a -$7.6 billion outflow. Q3 guidance of $197-202 billion missed the roughly $204 billion consensus, giving AI capex skeptics a harder argument to make.
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