Amazon Boasts Record Revenue, Issues Additional Bonds for AI Push

Amazon reported its second-quarter earnings, beating expectations and driving investor sentiment. The tech giant's revenue reached $200.6 billion, a 20% year-over-year increase, with net income standing at $62.65 billion. Amazon Web Services (AWS) revenue jumped by 37% to $42.2 billion, with a backlog of $496 billion.

The company issued an additional $25 billion in bonds to fund its AI capital expenditures and upcoming debt repayments. This multi-tranche bond offering has eight maturities ranging from 2029 to 2066. Amazon expects the expansion of its data center network to drive earnings, with capex payback expected within two to three years.

RBC Capital Markets upgraded its rating on Amazon stock to Outperform and raised its price target to $330 from $320. However, a Washington consumer suit alleges that Amazon made false claims about the origin of seafood sold at Whole Foods, seeking damages and restitution. The company also announced plans to pilot four-wheel pedal-assist cargo e-bikes for last-mile delivery integration.