Amazon Stock Price Sees Wild Ride After Reaching $3 Trillion
Amazon's stock price has been on a rollercoaster ride lately. The company reached a market capitalization of $3 trillion for the first time on August 3, but it only lasted one session. The stock closed at $277.42 on Tuesday, down 2.32% from Monday's close of $284.02.
The growth in Amazon's cloud business, Amazon Web Services (AWS), was a major contributor to the company's success. AWS grew 37% to $42.23 billion, its fastest growth rate in 18 quarters, with a backlog of $496 billion disclosed. However, the trailing free cash flow swung to negative $7.6 billion from positive $18.2 billion on $169 billion capex.
The second-quarter results showed that Amazon's net sales grew 20% to $200.61 billion, while operating income climbed 43% to $27.46 billion. However, the third-quarter guidance was a bit of a letdown, with management guiding net sales to $197.0 billion to $202.0 billion, implying 9% to 12% growth against a third-quarter 2025 base.
The reported net income for the quarter was $62.6 billion, or $5.75 per diluted share, but this number is misleading due to a non-cash gain of $53.4 billion attributed to Amazon's investment stake in Anthropic. Adjusted earnings of $1.97 per share represent 34.3% of the reported $5.75 headline.