Key Points
Shares of Amazon (NASDAQ: AMZN) are falling on Friday, down 8.3% as of 3:28 p.m. ET. The move comes as the S&P 500 and Nasdaq Composite have lost 1.7% and 2.3%, respectively.
Amazon released its Q2 financials, which, while beating many of Wall Street's expectations, fell short of lofty targets in a few key areas. News of additional tariffs is also affecting shares.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Amazon's cloud business is growing, but not fast enough for some investors
Amazon's Q2 earnings report revealed the company beat consensus estimates for both earnings per share and revenue. The company delivered $1.68 per share on $167.70 billion in sales, while $1.33 per share on $162.09 billion was expected.
However, investors were paying close attention to growth in the company's data center business, Amazon Web Services (AWS), and how it compares to its competition. The 18% year-over-year growth was much less than that of Microsoft's Azure or Alphabet's Google Cloud, which recorded 39% and 32% growth, respectively. Still, CEO Andy Jassy drove home the point that AWS is still by far the dominant player, saying, "I think the second player is about 65% of the size of AWS."
Image source: Getty Images.
Trump's new tariffs
President Trump signed an executive order updating "reciprocal" tariff rates for many countries, with new rates from 10% to 41%, on the August 1st deadline. Markets appear to have thought another extension would be announced, and stocks are down across the board. Because of Amazon's reliance on international trade, its stock was hit particularly hard.
Despite the tariff news and the somewhat underwhelming Q2 report, Amazon remains an incredibly profitable company with major growth potential.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,257!*
Now, it’s worth noting Stock Advisor’s total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2025
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.