Amazon.com CEO says AI chip Trainium two landing capacity in larger quantities
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6 hours ago
- Yahoo
JPMorgan drops 3-word verdict on Amazon stock post-earnings
JPMorgan drops 3-word verdict on Amazon stock post-earnings originally appeared on TheStreet. Amazon () posted a superb Q2 on paper, but the market was mostly unfazed. Shares pulled back sharply, with investors fixating on Amazon Web Services (AWS) relatively lagging in growth. However, in that cloud of concern (no pun intended), JPMorgan sees an opening, not noise. 💵💰💰💵 Veteran Analyst Doug Anmuth's call effectively cuts through the volatility, while putting fresh focus on how Wall Street's top desks are interpreting Amazon's long-term AI and infrastructure story. Amazon's big AI bet tests investor patience Amazon's Q2 results showed a clear contrast in booming top-line expansion, massive investment on one side, and investor unease on the other. Overall sales jumped a superb 13% amounting to $167.7 billion, beating estimates by an eye-popping $5.60 net income surged, with a $1.68 EPS, blowing past estimates by 36 cents. However, all eyes were on AWS sales, which were relatively uninspiring. AWS sales grew 17.5% to $30.9 billion, but remarkably lagged the headline-grabbing growth at competitors. Putting things in perspective, Microsoft Azure posted a 39% jump, while Google Cloud surged 32%, reinforcing fears that AWS may be losing ground in the AI cloud race. Margins told a similar story. AWS operating margin fell sharply to 32.9%, down from 39.5% the prior quarter. Management attributed the squeeze to its aggressive GenAI investments and infrastructure hiccups, particularly with power, chip supply, and server yields. What turned heads, though, was the spending. Amazon's capital expenditures came in at a record $31.4 billion, up close to 90% year-over-year. That's a remarkably high number, especially with management calling it 'reasonably representative' of what's to come in the back half of the year. However, the goal at this point is clear, and it involves scaling AWS's infrastructure quick enough to support AI ambitions and relieve capacity strain. Wall Street wasn't sold, with concerns centering around AWS's slower growth, thinner margins, and unclear near-term return on the hefty capex. Still, CEO Andy Jassy defended the strategy. He emphasized that Amazon is still in the early innings of its powerful multi-year AI journey and that capacity constraints will ease as new infrastructure comes online. JPMorgan's three-word response on Amazon stock: Buy the pullback As previously mentioned, Amazon may have delivered on paper, but the market didn't see it that way. Amazon stock tanked over 8% on Aug. 1, but it clawed back some of those losses pre-market Aug. 4. Still, the initial drop raises some major questions. Nevertheless, one top voice on the Street isn't analyst Doug Anmuth at JPMorgan feels the dip is exactly when investors should move in. He feels investors should 'Buy the pullback,' backing up his Buy rating on Amazon stock, while boosting his price target from $255 to $265, implying a superb upside of 23% from current levels. So what triggered the drop? According to Anmuth, the culprit was AWS. While AWS revenue jumped 17.5% year-over-year to $30.9 billion, it underwhelmed investors who expected more, especially considering the backdrop of AI-fueled cloud expansion. That's not all. Amazon also reported a record $31.4 billion in capex, which only made matters worse in compounding the pressure on AWS to deliver even bigger growth numbers. Still, the Street isn't backing off. Analysts at Citi also bumped their price target on the stock to $270, noting Amazon's higher spending reflects healthy demand and efforts to fix infrastructure constraints in the cloud. However, it's important to consider that growth lagged peers, and management didn't exactly calm concerns around the AI opportunity. Despite that, the Wall Street punditry believes the selloff doesn't match the broader story. And for JPMorgan, this is the kind of dip worth loading up on. AWS: Amazon's profit engine and AI powerhouse AWS is far from purely a segment; it's arguably the profit core and strategic anchor for the entire business. It's responsible for close to 60% of Amazon's operating income, with AWS running at an annualized sales pace above $123 billion. That scale gives it the profile of a standalone cloud giant, one that underpins the bulk of Amazon's enterprise Andy Jassy has reiterated AWS's incredible competitive moat, noting it's still 'meaningfully larger' than its next-closest rival. Recent data supports that lead. Per the most recent reports, AWS commands roughly 31% to 32% of the global cloud infrastructure market, followed closely by Microsoft Azure with roughly 22.5% to 24%, and Google Cloud at 10% to 12%. Other estimates tend to vary based on methodology, but generally confirm AWS's position at the top, with competitors trailing by a hefty margin. AI is rapidly deepening that role. AWS is investing a ton of money in generative and agentic AI, in serving external clients through the Generative AI Innovation Center. Another key differentiator for AWS is that it effectively originates from Amazon's internal infrastructure needs before commercialization. It comes with embedded efficiency and noteworthy cash-flow sustainability, making it more than a cost center, powering internal tools like Amazon Personalize. That synergy creates a robust loop where AI sharpens retail engagement and fuels more demand for compute. More News: Amazon's quiet pricing twist on tariffs stuns shoppersBank of America flags 3 breakout stocks to watch ahead of earnings Margins may have compressed recently on the back of AWS building its custom infrastructure, including Trainium chips, but those bets are about long-term dominance. JPMorgan drops 3-word verdict on Amazon stock post-earnings first appeared on TheStreet on Aug 4, 2025 This story was originally reported by TheStreet on Aug 4, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 hours ago
- Yahoo
JPMorgan drops 3-word verdict on Amazon stock post-earnings
JPMorgan drops 3-word verdict on Amazon stock post-earnings originally appeared on TheStreet. Amazon () posted a superb Q2 on paper, but the market was mostly unfazed. Shares pulled back sharply, with investors fixating on Amazon Web Services (AWS) relatively lagging in growth. However, in that cloud of concern (no pun intended), JPMorgan sees an opening, not noise. 💵💰💰💵 Veteran Analyst Doug Anmuth's call effectively cuts through the volatility, while putting fresh focus on how Wall Street's top desks are interpreting Amazon's long-term AI and infrastructure story. Amazon's big AI bet tests investor patience Amazon's Q2 results showed a clear contrast in booming top-line expansion, massive investment on one side, and investor unease on the other. Overall sales jumped a superb 13% amounting to $167.7 billion, beating estimates by an eye-popping $5.60 net income surged, with a $1.68 EPS, blowing past estimates by 36 cents. However, all eyes were on AWS sales, which were relatively uninspiring. AWS sales grew 17.5% to $30.9 billion, but remarkably lagged the headline-grabbing growth at competitors. Putting things in perspective, Microsoft Azure posted a 39% jump, while Google Cloud surged 32%, reinforcing fears that AWS may be losing ground in the AI cloud race. Margins told a similar story. AWS operating margin fell sharply to 32.9%, down from 39.5% the prior quarter. Management attributed the squeeze to its aggressive GenAI investments and infrastructure hiccups, particularly with power, chip supply, and server yields. What turned heads, though, was the spending. Amazon's capital expenditures came in at a record $31.4 billion, up close to 90% year-over-year. That's a remarkably high number, especially with management calling it 'reasonably representative' of what's to come in the back half of the year. However, the goal at this point is clear, and it involves scaling AWS's infrastructure quick enough to support AI ambitions and relieve capacity strain. Wall Street wasn't sold, with concerns centering around AWS's slower growth, thinner margins, and unclear near-term return on the hefty capex. Still, CEO Andy Jassy defended the strategy. He emphasized that Amazon is still in the early innings of its powerful multi-year AI journey and that capacity constraints will ease as new infrastructure comes online. JPMorgan's three-word response on Amazon stock: Buy the pullback As previously mentioned, Amazon may have delivered on paper, but the market didn't see it that way. Amazon stock tanked over 8% on Aug. 1, but it clawed back some of those losses pre-market Aug. 4. Still, the initial drop raises some major questions. Nevertheless, one top voice on the Street isn't analyst Doug Anmuth at JPMorgan feels the dip is exactly when investors should move in. He feels investors should 'Buy the pullback,' backing up his Buy rating on Amazon stock, while boosting his price target from $255 to $265, implying a superb upside of 23% from current levels. So what triggered the drop? According to Anmuth, the culprit was AWS. While AWS revenue jumped 17.5% year-over-year to $30.9 billion, it underwhelmed investors who expected more, especially considering the backdrop of AI-fueled cloud expansion. That's not all. Amazon also reported a record $31.4 billion in capex, which only made matters worse in compounding the pressure on AWS to deliver even bigger growth numbers. Still, the Street isn't backing off. Analysts at Citi also bumped their price target on the stock to $270, noting Amazon's higher spending reflects healthy demand and efforts to fix infrastructure constraints in the cloud. However, it's important to consider that growth lagged peers, and management didn't exactly calm concerns around the AI opportunity. Despite that, the Wall Street punditry believes the selloff doesn't match the broader story. And for JPMorgan, this is the kind of dip worth loading up on. AWS: Amazon's profit engine and AI powerhouse AWS is far from purely a segment; it's arguably the profit core and strategic anchor for the entire business. It's responsible for close to 60% of Amazon's operating income, with AWS running at an annualized sales pace above $123 billion. That scale gives it the profile of a standalone cloud giant, one that underpins the bulk of Amazon's enterprise Andy Jassy has reiterated AWS's incredible competitive moat, noting it's still 'meaningfully larger' than its next-closest rival. Recent data supports that lead. Per the most recent reports, AWS commands roughly 31% to 32% of the global cloud infrastructure market, followed closely by Microsoft Azure with roughly 22.5% to 24%, and Google Cloud at 10% to 12%. Other estimates tend to vary based on methodology, but generally confirm AWS's position at the top, with competitors trailing by a hefty margin. AI is rapidly deepening that role. AWS is investing a ton of money in generative and agentic AI, in serving external clients through the Generative AI Innovation Center. Another key differentiator for AWS is that it effectively originates from Amazon's internal infrastructure needs before commercialization. It comes with embedded efficiency and noteworthy cash-flow sustainability, making it more than a cost center, powering internal tools like Amazon Personalize. That synergy creates a robust loop where AI sharpens retail engagement and fuels more demand for compute. More News: Amazon's quiet pricing twist on tariffs stuns shoppersBank of America flags 3 breakout stocks to watch ahead of earnings Margins may have compressed recently on the back of AWS building its custom infrastructure, including Trainium chips, but those bets are about long-term dominance. JPMorgan drops 3-word verdict on Amazon stock post-earnings first appeared on TheStreet on Aug 4, 2025 This story was originally reported by TheStreet on Aug 4, 2025, where it first appeared.
Business Wire
7 hours ago
- Business Wire
G2 and AWS Expand Partnership to Create Frictionless Software Buying Experience with Generative AI-Powered Insights
CHICAGO--(BUSINESS WIRE)-- G2 today announced a renewed and expanded four-year relationship with Amazon Web Services. The collaboration will expand the integration of G2 content into AWS Marketplace to fuel AI-powered experiences, including generative AI product comparison insights across AWS Marketplace listings. 'We're proud to deepen our collaboration with AWS, building a more connected and intelligent software buying journey across G2 and AWS Marketplace,' said Godard Abel, Co-Founder and CEO of G2. G2 and AWS Marketplace already ingest more than 20,000 user reviews for products available in AWS Marketplace. G2 content will now be among the data sources used to power product insights in AWS Marketplace, supporting new generative AI-powered insights built using Amazon Bedrock. This includes surfacing key customer sentiment from over 3 million authentic reviews on G2 and summarizing them in AWS Marketplace for easy side-by-side product comparisons, enabling buyers to quickly understand a product's strengths and considerations at a glance. 'We're constantly innovating to make AWS Marketplace the best destination for customers to find, procure, and deploy the IT solutions they need," said Matt Yanchyshyn, VP, AWS Marketplace and Partner Services at AWS. "Our expanded collaboration with G2 enhances the customer experience by integrating authentic peer reviews with generative AI-powered insights, simplifying the purchase decision-making process. This represents our commitment to creating more intuitive and efficient experiences that help customers accelerate innovation." Enriching the AWS Marketplace Buyer Experience As software buyers increasingly rely on community-driven validation and self-service evaluation, this collaboration provides them with the information needed to decide on the right product and then transact directly in AWS Marketplace. G2-powered enhancements in AWS Marketplace include: AI-generated, side-by-side product comparisons, which surface key product themes, customer sentiment, and differentiated strengths based on millions of verified reviews Rich, contextual product content powered by G2's trusted taxonomy and user insights to streamline evaluation and comparison Syndication of G2 Reviews and Ratings to software listings across AWS Marketplace Frictionless buyer journeys, enabling AWS users to move confidently from research to purchase with fewer steps 'We're proud to deepen our collaboration with AWS, building a more connected and intelligent software buying journey across G2 and AWS Marketplace,' said Godard Abel, Co-Founder and CEO of G2. 'By combining trusted peer voices with AI-driven insights, we're not only accelerating decision-making for buyers, but also laying the groundwork for a future where software discovery is seamless, personalized, and community-powered — in all the places customers are.' Empowering Vendors and Buyers Alike Software vendors listed on both G2 and AWS Marketplace will benefit from increased visibility, credibility, and accelerated conversion. By extending their reach in AWS Marketplace with validated user insights and generative AI-enriched content, vendors can better differentiate their offerings and guide prospective buyers through the purchasing process. G2's unique review sourcing approach — including conversational voice reviews and direct meeting-to-review conversions — ensures vendors can achieve both review recency and quality. This deepened relationship reinforces G2's vision to make software buying smarter, faster, and more transparent — setting the foundation for further innovation across the digital procurement experience. Learn more about how to maximize the benefits of this expanded AWS and G2 integration. About G2 G2 is the world's largest and most trusted software marketplace. More than 100 million people annually — including employees at all Fortune 500 companies — use G2 to make smarter software decisions based on authentic peer reviews. Thousands of software and services companies of all sizes partner with G2 to build their reputation and grow their business — including Salesforce, HubSpot, Zoom, and Adobe. To learn more about where you go for software, visit and follow us on LinkedIn.
