Description

Amazon’s Cloud Empire Is Booming—But There’s a Hidden Problem

Amazon.com delivered a strong financial performance in the second quarter of 2025, with revenue reaching $167.7 billion, up 12% year-over-year excluding foreign exchange impacts, and operating income rising 31% to $19.2 billion. Earnings per share climbed to $1.68, significantly above Wall Street’s expectation of $1.33, and higher than the $1.26 recorded in the same quarter last year. Free cash flow for the trailing 12 months stood at $18.2 billion, underscoring solid operational efficiency. The company’s retail operations, which account for fourfifths of total revenue, performed particularly well, generating $107 billion in sales—an 11% increase from the prior year and comfortably ahead of analyst estimates. Strong performance was attributed to improved pricing and selection, the reintroduction of Nike products, new luxury brands, and a boost in grocery offerings. Initiatives like the Perishables Pilot program enhanced customer engagement and repeat shopping behavior, contributing to record-breaking Prime Day sales. Amazon also continues to lead on price competitiveness, maintaining the lowest prices among U.S. retailers according to Profitero.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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