Amazon's Record-Breaking Quarter Fuels Strong Buy Rating

Amazon's record-breaking Q2 2026 results delivered $200.6 billion in sales, marking its highest quarterly revenue yet.

The company's operating income grew by a significant 43%, driven largely by AWS cloud services and advertising.

AWS accounted for just 21% of Amazon's total revenue but contributed 60% to the company's operating income, with a remarkable 39.4% margin.

Notably, Amazon's stake in Anthropic provides strategic financial flexibility, access to AWS cloud revenue, and a hedge against Nvidia's chip pricing power.

In light of rising capital expenditures and memory costs that may erode future margins, the analyst maintains a Strong Buy rating due to Amazon's leverage and resilient growth prospects.