AI-Boosted Earnings Can't Shield Amazon from Valuation Pressures

Amazon's stock price fell by approximately 2.1% to $260.34 on Thursday morning, weighed down by rising Treasury yields that slammed expensive growth stocks.

The bigger story behind Amazon's second-quarter profit is its massive AI investment gain, which exceeded quarterly operating income by about $26 billion.

Amazon booked roughly $53.4 billion of pretax non-operating income primarily tied to its Anthropic investment, according to Reuters.

However, investors are focused on the underlying cash generation, and Amazon's valuation leaves little room for complacency.