tech
Amazon revenue soars as AI investments pay off
Amazon's AI cloud business soared in the second quarter, driving far higher revenue than expected, though the company's free cash flow also turned negative as it invests heavily in the business.
TL;DR
- Amazon's net sales increased by 20% to $200.6 billion, exceeding S&P Capital IQ expectations.
- Amazon Web Services' AI and chips businesses experienced triple-digit growth, reaching an annualized revenue rate of $25 billion.
- AWS sales specifically jumped by 37%.
- Net income was $62.6 billion, largely influenced by a pre-tax gain from an investment in Anthropic.
- Amazon's free cash flow became negative, amounting to an outflow of $7.6 billion in the twelve months ending June 30, a decrease from a positive inflow the previous year.
- Amazon shares increased by 9.4% in after-hours trading.