Amazon Shares Dive 8% After Mixed Q2 Earnings Report

SEATTLE, Washington – Amazon shares plummeted by 8% on Friday after the company released its second-quarter earnings report that left investors underwhelmed.

The report, published on July 31, 2025, revealed that Amazon Web Services (AWS) revenue grew 18% year over year, reaching $30.87 billion. While this increase matched analyst expectations, it did not accelerate compared to previous quarters. This cooling growth contrasted sharply with strong performances reported by rivals Microsoft and Alphabet earlier in the week.

“While AWS met expectations, it seems investors were hoping for more growth following strong results from competitors,” noted analysts at Jefferies, who described AWS’s performance as “disappointing.”

As a result of the report, Amazon’s stock closed at just below $215, marking a decline that has pushed it into negative territory for the year. Following the earnings report, some analysts, including those at JPMorgan, recommended buying the dip, raising their price targets significantly.

Amazon’s Chief Financial Officer, Brian Olsavsky, stated that the company will continue investing heavily in capital expenditures. He mentioned that capital expenses reached $31.4 billion in the second quarter, largely directed toward expanding AWS to meet rising demand for AI services.

Despite the disappointing earnings report, optimism for Amazon’s long-term prospects remains. Wall Street analysts have set an average price target of $258.03, indicating a potential upside of approximately 20.15% from the current stock price, as they maintain upbeat views on the company’s market position.

The key support levels that investors are watching closely include $199, $190, and $175, while the overhead area at $233 remains a significant point of interest during any potential recovery efforts. Investors are advised to monitor future earnings and guidance closely for indications of ongoing trends and investment strategies in Amazon’s stock.