Amazon Stock Falls Despite Strong AWS Growth and Record Prime Day Sales

Quick overview

During the Asian trading session on Thursday, the Amazon (AMZN) stock failed to stop its previous bearish performance and was trading near $243.62, showing 0.96 percent losses in the last 24 hours. Meanwhile, the stock is down 1.52 percent over the last six months and is still below its all time high of $274, which it reached on May 28.

Moreover, the reason for its sluggish performance can be linked to the companys high spending on artificial intelligence and cloud computing. This investment could be good for the company in the long term, but it has made some investors worried in the short term. For example, Amazon needs more money to make AI servers, data centers, and other equipment, so it planned to raise 25 billion dollars by selling bonds. But the bonds received less interest from buyers than expected, which was seen as a key factor putting pressure on the stock.

Despite this, Amazons daily businesses, like its online store and cloud business, are doing very well and showing excellent sales.

Amazon Still Growing Despite Big AI Investment

Furthermore, the proof of this company’s better performance is also given by its strong earnings report for the first three months Quarter  of 2026, in which it is shown that the company made 181.5 billion dollars in sales, which is 17 percent higher than the previous year. Meanwhile, North America sales increased by 12 percent to 104.1 billion dollars and international sales increased by 19 percent to 39.8 billion dollars.

Moreover, the company’s GAAP net income was also very good at 30.3 billion dollars (diluted EPS $2.78), which was much higher than the previous year. Amazon’s operating income was 23.9 billion dollars. Cloud business AWS gave the best performance and increased by 28 percent to 37.6 billion dollars in sales. The advertising business also increased by 24 percent to 17.2 billion dollars. In contrast, the companys free cash flow was only $1.2 billion in the last 12 months due to heavy AI spending.

Looking forward, investors are keeping thier eyes on the next earnings report, which is scheduled to be released at the end of July. However, the company expects Quarter 2 2026 sales to be between 194 billion to 199 billion dollars, with operating income between $20 billion and $24 billion. Experts believe Amazon could make more than 800 billion dollars in the whole of 2026. Amazon is still the largest cloud company, but Microsoft and Google are giving it tough competition.

Amazon Prime Day Breaks Records

Apart from this, Amazon also proved itself strong through its recently held event. As we know, Amazon hosted the big Prime Day online shopping event in July 2026. Interestingly,, Amazon made 26.4 billion dollars in sales in the United States alone, which was much higher than last year. However, the most sales came from beauty products, electronics, and clothes.

As a result of this event, Amazon received a huge number of orders and delivered them quickly. Experts believe it will also help the company’s Q2 sales.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Meta (META) Stock Falls Despite Strong Q1 Earnings and Advertising Growth

2 h ago

Save

Micron Stock Rises as AI Memory Chip Demand Drives Strong Revenue Growth

20 h ago

Save

NVIDIA Stock Rises as Strong AI Demand Offsets Valuation and Supply Concerns

22 h ago

Save