Amazon's second-quarter results for the period ending June 30, 2024, revealed a 10% increase in revenue to $147.98 billion, although this fell short of Wall Street's expectations of $148.56 billion.

The company's profits reached $13.5 billion, or $1.26 per share, nearly doubling profits from the same quarter last year and exceeding estimates of $1.03 per share.

AWS revenue grew by 19%, marking its third consecutive quarter of acceleration, contributing to a 6% increase in overall operating income.

Despite strong growth in AWS, the company forecasts third-quarter net sales between $154.0 billion and $158.5 billion, which is below analyst estimates.

Following the earnings report, Amazon's stock fell nearly 7% in after-hours trading, reflecting a broader decline in large-cap tech shares.

The timing of Amazon's earnings report coincides with the Federal Reserve's interest rate policy meeting, which may influence tech stock performance.

Investors are particularly focused on how artificial intelligence is impacting growth in Amazon's cloud business and advertising segment expansion.

The company indicated that consumers are becoming more cautious with their spending, leading to increased sales of lower-cost household goods through Amazon's Everyday Essentials business.

The financial impact of Prime Day will be a key focus for investors, with data suggesting it generated approximately $14 billion in online spending across U.S. retailers.

Amazon's IBD Composite Rating is 78 out of 99, indicating strong performance among growth stocks despite recent challenges.

All 39 analysts covering AMZN stock currently rate it a 'Buy,' with an average price target of $225.65 per share, suggesting a potential upside of 21%.

Additionally, the company is dealing with an antitrust lawsuit alleging it overcharges sellers and stifles competition, which could impact future performance.