AWS Saves Amazon from July's 2.2% Online Sales Decline

Amazon faced a decline in online sales for July, with nonstore retail sales dropping by 2.2% compared to June.

This decrease was partly due to Amazon's decision to move Prime Day to June, which brought forward buying into that month and resulted in the timing of sales shifting.

However, despite this timing effect, softer consumer sentiment and reduced core spending set a higher hurdle for the holiday season.

AWS, Amazon's cloud business, remains a significant buffer to profits, generating 60% of operating income in the second quarter while accounting for just 21% of total revenue.