Amazon’s second quarter results exceeded Wall Street’s revenue and profit expectations, but the market reacted negatively, reflecting investor concerns around underlying business trends. Management pointed to advancements in fulfillment speed, the return of premium brands to its marketplace, and strong Prime Day engagement as key drivers. CEO Andy Jassy highlighted operational improvements in logistics and inventory placement, as well as record participation from third-party sellers. While advertising and AWS segments posted solid top-line growth, AWS operating margins fell, and management acknowledged headwinds from higher depreciation expenses and increased competition in cloud computing.

Is now the time to buy AMZN? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Amazon’s Q2 Earnings Call

• Douglas Till Anmuth (JPMorgan): Asked about how tariffs are absorbed across Amazon, suppliers, and consumers. CEO Andy Jassy replied that outcomes remain uncertain, with no broad-based price increases or demand declines seen yet, but that could change.

• Mark Stephen F. Mahaney (Evercore): Inquired about AWS supply constraints and backlog. Jassy and VP Dave Fildes confirmed $195 billion in AWS backlog and said supply constraints, especially for power, will likely persist for several quarters.

• Colin Alan Sebastian (Baird): Asked about the sustainability of improved international margins and Kuiper’s commercial timeline. CFO Brian Olsavsky described ongoing improvements in established and emerging markets, while Jassy said Kuiper’s commercial launch depends on rocket availability and remains on track.

• Brian Thomas Nowak (Morgan Stanley): Questioned AWS’s competitive positioning in generative AI. Jassy argued AWS retains key advantages in security, functionality, and custom silicon, while admitting the market is still early in AI adoption and supply is a limiting factor.

• Justin Post (Bank of America): Sought detail on drivers of robust Q3 revenue guidance. Olsavsky cited Prime Day momentum, improved fulfillment speed, and selection, but warned that tariff and macro uncertainties are built into expectations.

Catalysts in Upcoming Quarters

In upcoming quarters, our analyst team will focus on (1) the pace of expansion for same-day and next-day delivery and its effect on customer retention, (2) AWS’s ability to overcome supply constraints and maintain margin stability amid large AI infrastructure investments, and (3) the evolving impact of tariffs on pricing and consumer demand. We will also track the adoption and monetization of new AI products across Amazon’s ecosystem.

Amazon currently trades at $221.36, down from $234.06 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.