Amazon Stock Price Drops 12%, But AWS Growth Keeps Rising

Amazon's stock has been on a rollercoaster ride since hitting an all-time high of $284.02 in August. After a rapid 21% increase, the price dropped about 12% to around $249.

The main reason for the decline is the ongoing lawsuit against Amazon by the Federal Trade Commission and 22 state attorneys general over its ad auctions. However, this development may not have much of an impact on the company's results, as advertising revenue grew 26% year-over-year in the second quarter to $19.8 billion.

AWS continues to be a major driver for Amazon's growth, with revenue rising 37% year-over-year to $42.2 billion. The unit's operating income increased around 64% year-over-year to $16.6 billion, outpacing its sales growth.