AMZN's Q2 Guidance Was Better Than Many Thought, Prominent Analyst Says

After many on the Street expressed concern about Amazon's (AMZN) second-quarter operating income guidance, which came in below analysts' average estimate at the midpoint of the range, Gene Munster suggested during his recent appearance on CNBC that the guidance was actually rather good.

A longtime, well-known tech analyst at investment bank Piper Jaffray, Munster is now the Managing Partner of Deepwater Asset Management.

Munster's Comments on Amazon's Guidance

Noting that AMZN's results typically come in at the high end of the tech giant's guidance ranges, Munster reported that the high end of its Q2 operating income guidance was actually in-line with  analysts' mean outlook.

"That really is a powerful statement relative to the macro(economic) environment that we're  in," Munster said.

Since the retail market is currently "tough," Amazon's outlook was "a net positive," Munster contended.

The Recent Price Action of AMZN Stock

In the last month, the shares have lost 2.5%, while they have tumbled 21% in the last three months.

While we acknowledge the potential of AMZN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.