Strong Quarter, Weak Confidence: Navigating the AMZN Market Jitters
Amazon’s Q2 Results Deliver, So Why the Pre-Market 8% Selloff? A Look at Investor Anxiety and Institutional Response
Amazon reported strong year-over-year performance for Q2 2025:
Revenue rose 13% to $167.7B (vs. $148.0B in Q2 2024)
Net income grew to $18.2B from $13.5B (+35%), with EPS up to $1.68 from $1.26
Operating cash flow increased 12% to $121.1B
Free cash flow fell sharply to $18.2B from $53.0B
Dividends remain nil
The -8% drop reflects investor unease around declining free cash flow, high capex, and uncertain ROI on Amazon’s aggressive AI infrastructure expansion. Although topline growth is solid, some analysts view margins as peaking and worry that AWS tailwinds may slow.
Institutional investors aren’t panicking but are re-evaluating risk/reward. Valuation multiples remain elevated (P/E ~37), and despite promising AI and logistics enhancements, confidence depends on execution.
Amazon is not broken. It is not a Black Swan. Investor expectations just need a reset.