Instant Reaction: Amazon Falls After Earnings, Cloud Growth Spooks Investors
Bloomberg Surveillance
Bloomberg
3.8 • 1.2K Ratings
🗓️ 31 July 2025
⏱️ 15 minutes
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Summary
Amazon.com dropped in late trading after projecting weaker-than-expected operating income and trailing the sales growth of its cloud rivals, leaving investors searching for signs that the company’s huge investments in artificial intelligence are paying off. Operating profit will be $15.5 billion to $20.5 billion in the period ending in September, compared with an average estimate of $19.4 billion. Sales will be $174 billion to $179.5 billion, the company said Thursday in a statement. Analysts, on average, expected $173.2 billion. Chief Executive Officer Andy Jassy is engaged in an AI infrastructure arms race with Microsoft Corp. and Alphabet Inc. that requires heavy spending on data centers. Both of those rivals earlier reported strong earnings showing they are benefiting from the AI boom.
For instant reaction and analysis, hosts Carol Massar and Tim Stenovec speak with:
- Bloomberg Intelligence Senior Technology Analyst Anurag Rana
- Bloomberg Intelligence Senior Analyst for E-commerce & Athleisure Poonam Goyal
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| 1:20.5 | Amazon shares down in the after hours. |
| 1:22.7 | The company sees third quarter operating income $15.5 to $20.5 billion. |
| 1:28.2 | I was in line with estimates that are at $ 19.42 billion. I guess maybe on the lower side, it's not in line. And second |
| 1:33.4 | quarter operating income, though, blew past estimates at 19.17 billion dollars. Yeah, I do think |
| 1:38.9 | that third quarter operating income could possibly, especially the downside or the lower end of |
| 1:43.3 | the estimate, be problematic. Let's see what our team has to say. It is such a massive company, as you know. We need two Bloomberg intelligence analysts to really break it down with us. It's senior technology analyst, Anurag Rana, and senior analyst, excuse me, for e-commerce and at leisure, Poonam Goyle, Anurag, out there in our Chicago Bureau, |
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