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Amazon’s 2025 Performance and Financial Results
Amazon (NASDAQ: AMZN) has underperformed in 2025, with shares up only mid-single digits year to date, compared to a low teens increase in the S&P 500. Despite this, the company’s Q2 report showed strong momentum, with net sales rising 13% to $167.7 billion and operating income climbing 31% to $19.2 billion, resulting in an operating margin of 11.4%, up from 9.9% in the prior year.
Key performance indicators include a 17% increase in AWS revenue to $30.9 billion and a 23% rise in advertising services revenue to $15.7 billion. The North America retail segment’s operating income surged 48% to $7.5 billion, while the international segment’s operating income rose from $0.3 billion to $1.5 billion with a 16% year-over-year sales increase.
Management expects third-quarter net sales to grow by 10% to 13% and operating income between $15.5 billion and $20.5 billion. However, heavy capital expenditures and increasing competition from companies like Microsoft and Alphabet pose risks. Currently trading in the low-$230s, Amazon’s valuation stands at about 35 times earnings.
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