"Amazon has been a steady winner in 2025, even as investors debate how quickly artificial intelligence will translate into dollars for the tech and retail giant. The company operates a massive online marketplace and logistics network, a fast-growing advertising platform embedded across its properties, and Amazon Web Services (AWS), the world's largest cloud infrastructure business. Recent results and guidance point to a company leaning further into its most profitable areas."
"Amazon's second-quarter results were strong where it matters most. Net sales rose 13% year over year to $167.7 billion, while operating income climbed 31% to $19.2 billion. AWS grew 17.5% to $30.9 billion, and advertising services increased 23% to $15.7 billion -- both outpacing consolidated growth and, importantly, carrying richer margins than first-party retail. The mix is slowly shifting toward these higher-margin engines. In the quarter, AWS represented about 18% of revenue, and advertising services exceeded 9% of total sales."
Amazon posted robust second-quarter results with net sales up 13% to $167.7 billion and operating income up 31% to $19.2 billion. AWS revenue rose 17.5% to $30.9 billion with an operating margin near 37%, while advertising services grew 23% to $15.7 billion and now exceed 9% of total sales. Together AWS and advertising represent an expanding, higher-margin portion of revenue, supporting improved trailing-twelve-month EPS from $4.18 to $6.55. Continued mix shift toward these businesses, along with disciplined cost control, creates a plausible path for healthy earnings compounding and meaningful upside in the stock.
Read at The Motley Fool
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