Investors remain cautious despite Amazon’s Q2 revenue guidance of $196.50 billion, a 12% sequential increase, as capital spending concerns linger.
Amazon projected Q2 revenue of $196.50 billion, a 12% rise from prior guidance, with operating income up 16% sequentially. The forecast includes AWS growth of 28% year-over-year, its fastest pace in 15 quarters, signaling a major acceleration in business momentum.
Despite the bullish outlook, Amazon shares have barely moved, down 0.7% since the Apr 29, 2026 guidance. The market’s muted response reflects skepticism over the company’s heavy capital investments to fuel AI-driven growth, which management acknowledged would be significant in coming years.
Investors appear to be weighing the growth potential against the cost of expansion, opting to wait for clearer signs of returns before endorsing the optimism.