New Amazon Price Predictions Unveiled
In a surprising turn of events, Amazon's stock experienced a seven percent plunge on Friday, following the release of its Q2 2025 earnings report. Despite beating revenue and EPS expectations, the tech giant's cautious guidance for Q3 operating income has raised concerns among investors.
Amazon forecasted Q3 operating income to be between $15.5–$20.5 billion, falling short of the expected $19.48 billion. This conservative outlook, coupled with worries about Amazon Web Services' (AWS) competitive positioning in the AI-driven cloud market, has left investors uneasy.
AWS, which accounted for a significant portion of Amazon's revenue, grew revenue by 17.5% year-over-year. However, this growth rate lagged behind competitors Microsoft Azure (39% growth) and Google Cloud (32% growth), causing fears about AWS's ability to capture AI-related demand.
CEO Andy Jassy acknowledged "structural issues" in this area, further fueling investor skepticism. Macroeconomic headwinds like tariffs and trade policy uncertainty have only added to the concerns.
However, not all analysts share this pessimistic view. Several have expressed disagreement with the conservative outlook and see more potential for growth in Amazon's stock. They argue that the company's heavy investment in AI computing capacity and its market share leadership in cloud computing will help it navigate these challenges.
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[1] Source: Amazon's Q2 2025 Earnings Report [2] Source: MarketWatch [4] Source: CNBC
- Due to concerns about Amazon Web Services' (AWS) competitive position in the AI-driven cloud market and the company's conservative Q3 2025 operating income guidance, some investors are hesitant to finance or invest in Amazon stocks.
- Despite the recent plunge in Amazon's stock and worries about AWS's growth rate, some analysts see potential for investing in Amazon, citing the company's heavy investment in AI computing capacity and its market share leadership in cloud computing.
