Key Points
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Amazon’s free cash flow for the trailing 12 months was a negative $7.6 billion, down from a positive $18.2 billion a year prior.
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Operating cash flow increased 33% year over year to $161.4 billion, indicating strong business performance despite the cash burn.
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AWS revenue grew 37% to $42.2 billion, marking its fastest growth in 18 quarters.
Amazon (NASDAQ: AMZN) reported its Q2 results on Thursday, revealing a significant shift in free cash flow that dropped to an outflow of $7.6 billion compared to an inflow of $18.2 billion last year. Despite this downturn, shares surged approximately 15% on Friday, closing around $271, near their 52-week high.
The decline in free cash flow is attributed to substantial capital spending, which reached $169 billion, up 64% year over year, while operating cash flow rose to $161.4 billion. CEO Andy Jassy highlighted increased investments in artificial intelligence (AI) as a primary driver of this capital expenditure. Notably, AWS reported a 37% revenue increase, contributing significantly to Amazon’s overall performance and demonstrating robust growth potential.
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