Heading into Amazon’s (NASDAQ:AMZN) second-quarter earnings print, the stock had struggled to overcome fears of overinvestment in artificial intelligence and deteriorating free cash flow (FCF).
But it turns out the market is willing to reward companies that take big bets, as long as there is evidence of big returns
Amazon reported blowout second-quarter earnings results, crushing Wall Street consensus estimates for earnings and revenue, even as it raised its full-year capital expenditure guidance. Revenue of roughly $200.6 billion beat estimates by over $4 billion and rose nearly 20% year over year. Operating income surged over 43%.
Earnings came in particularly high, due to a pre-tax gain of over $53 billion, largely from Amazon’s stake in Anthropic. Amazon stock had surged roughly 13.4%, as of 11:48 a.m. ET today, not only due to the results, but also because Amazon CEO Andy Jassy delivered tremendous news to shareholders.