--- title: "Is Amazon a Buy After Its Latest Earnings Report?" type: "News" locale: "en" url: "https://longbridge.com/en/news/294418351.md" description: "Amazon stock rose 8% after-hours following strong Q2 earnings, driven by AWS growth and a $53.4 billion net income gain largely from its Anthropic investment. CEO Andy Jassy highlighted AWS's fastest quarterly growth in four years (36.7%) and AI/chip businesses reaching $25 billion annual run rates. However, heavy AI infrastructure spending resulted in negative free cash flow of $7.6 billion for the trailing twelve months, contrasting with previous gains." datetime: "2026-07-30T21:21:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294418351.md) - [en](https://longbridge.com/en/news/294418351.md) - [zh-HK](https://longbridge.com/zh-HK/news/294418351.md) --- # Is Amazon a Buy After Its Latest Earnings Report? **Amazon** (AMZN +3.91%) stock jumped 8% in after-hours trading Thursday after the company reported second-quarter earnings that reflected strong growth in Amazon Web Services and its fast-growing AI and chips businesses. The company also reported a huge $53.4 billion gain in net income, which it largely attributed to its investment in Anthropic, the start-up AI company that is considering an IPO at a valuation of nearly $1 trillion. CEO Andy Jassy noted that AWS had its fastest quarterly growth in more than four years, with revenue increasing 36.7% from a year ago. “There’s a lot to be excited about, and we have much more coming for customers in the second half of the year and beyond,” he said in a statement. Let’s take a closer look at Amazon and why investors are giving its earnings report a thumbs up. ![An Amazon Flex driver is delivering a package to a doorstep.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2Nkbi5jb250ZW50LmZvb2xjZG4uY29tL2ltYWdlcy8xdW1uOXFlaC9wcm9kdWN0aW9uLzQ3NGZhNTM2OTRjZGRjN2ZhMTc1MThhODhiNjE2YjI5NGU4NTQxZDMtMjAwMHgxMjAwLnBuZz93PTIwMDAmaD0xMjAwJnE9NzUmYXV0bz1mb3JtYXQmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Amazon. ## Amazon’s earnings by the numbers Amazon wears a lot of hats -- it’s the biggest online retailer in the world, and AWS has the greatest market share among cloud computing companies, holding 28% of the market. Overall, Amazon’s revenue topped $200.6 billion for the quarter, up 19.6% from a year ago. Sales of the North America segment increased 16% to $116.2 billion, while International segment sales increased 15% to $42.2 billion. AWS sales were also $42.2 billion. AWS, however, has historically provided the highest profit margin, and that held in the second quarter. AWS generated $16.6 billion in operating income, up from $10.2 billion a year ago. The retail business had much smaller margins -- the North America segment had $9.1 billion in operating income despite more than $116 billion in sales; the International segment had just $1.7 billion in operating income despite nearly identical revenue to AWS. Amazon said that AWS’s AI business exceeded an annual run rate of $25 billion. The company signed new AWS agreements during the quarter with several prominent companies, including **Warner Bros. Discovery**, **Siemens Energy**, **Ryanair**, **Pinterest**, **Snowflake**, and **Moody’s**. It also achieved a $25 billion annual run rate for its chips business, which includes its custom-built Trainium AI chip. Amazon has multi-year commitments from Anthropic and OpenAI, as well as **Uber Technologies**, Pinterest, and several AI start-ups. Expand ![Amazon Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FNWk4ucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NASDAQ: AMZN Amazon Today's Change (3.91%) $8.85 Current Price $235.50 ### Key Data Points Market Cap $2.4TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $231.06 - $239.82 52wk Range $196.00 - $278.56 Volume 95M Avg Vol 48.2M Gross Margin 50.60% The Anthropic investment is also paying off in a big way for Amazon, which invested $13 billion in the AI startup and has the option to invest $20 billion more. Amazon didn’t indicate how much the investment is now worth, but said in a news release that its $53.4 billion in non-operating pre-tax income was primarily attributable to its Anthropic investment. ## Not everything is roses, however While Amazon recorded big revenue gains, its continued investment in AI infrastructure is pressuring the company’s cash position. Amazon reported that free cash flow now stands at negative $7.6 billion for the trailing 12 months, versus a gain of $18.2 billion for the trailing 12 months at the end of Q2 2025. Amazon also didn’t immediately say whether it was maintaining its capex, which was previously $200 billion this year. **Alphabet**, like Amazon, also reported strong revenue gains last week and had negative free cash flow. Its stock fell 6% post-earnings after the company disclosed plans to increase its capex spending from $185 billion to $200 billion. Jassy has previously expressed confidence in Amazon’s spending, saying, “We’re not investing approximately $200 billion in capex in 2026 on a hunch.” The Anthropic investment gives Amazon some cushion, and its strong revenue growth in its AI and custom chips businesses is a promising sign. Amazon is operating in a position of strength in the cloud, which is why the stock is up after earnings. ### Related Stocks - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [AMZU.US](https://longbridge.com/en/quote/AMZU.US.md) - [AMZZ.US](https://longbridge.com/en/quote/AMZZ.US.md) - [AMZG.US](https://longbridge.com/en/quote/AMZG.US.md) - [AMZW.US](https://longbridge.com/en/quote/AMZW.US.md) - [AMZD.US](https://longbridge.com/en/quote/AMZD.US.md) - [AMZO.US](https://longbridge.com/en/quote/AMZO.US.md) - [AMZY.US](https://longbridge.com/en/quote/AMZY.US.md) - [AZYY.US](https://longbridge.com/en/quote/AZYY.US.md) - [AMZP.US](https://longbridge.com/en/quote/AMZP.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [ANTH.NA](https://longbridge.com/en/quote/ANTH.NA.md) - [WBD.US](https://longbridge.com/en/quote/WBD.US.md) - [ENR.DE](https://longbridge.com/en/quote/ENR.DE.md) - [RYAAY.US](https://longbridge.com/en/quote/RYAAY.US.md) - [PINS.US](https://longbridge.com/en/quote/PINS.US.md) - [SNOW.US](https://longbridge.com/en/quote/SNOW.US.md) - [MCO.US](https://longbridge.com/en/quote/MCO.US.md) - [OpenAI.NA](https://longbridge.com/en/quote/OpenAI.NA.md) - [UBER.US](https://longbridge.com/en/quote/UBER.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [RYA.UK](https://longbridge.com/en/quote/RYA.UK.md) ## Related News & Research - [AMZN: Q2 2026 delivered 20% revenue growth, record AWS acceleration, and raised CapEx guidance](https://longbridge.com/en/news/294426810.md) - [AWS is ‘booming,’ but Amazon’s free cash flow turns negative on record AI spending](https://longbridge.com/en/news/294416128.md) - [Recursive Superintelligence signs $400 compute deal with Amazon](https://longbridge.com/en/news/294074017.md) - [Prediction: CEO Andy Jassy will raise Amazon's full-year 2026 capex guide on July 30](https://longbridge.com/en/news/293883787.md) - [Amazon Stock Trades Below Its 50-Day Average With Earnings Just a Week Away](https://longbridge.com/en/news/293624943.md)