The Prague Post - Amazon profits surge 35% as AI investments drive growth

EUR -
AED 4.232344
AFN 81.239797
ALL 98.413639
AMD 441.954506
ANG 2.062221
AOA 1056.634125
ARS 1571.150714
AUD 1.788673
AWG 2.076971
AZN 1.963437
BAM 1.974127
BBD 2.325792
BDT 140.818142
BGN 1.950821
BHD 0.43438
BIF 3390.561252
BMD 1.152272
BND 1.495685
BOB 7.959897
BRL 6.400647
BSD 1.151995
BTN 100.748313
BWP 15.803716
BYN 3.769697
BYR 22584.537141
BZD 2.313881
CAD 1.590752
CDF 3330.067373
CHF 0.930506
CLF 0.028451
CLP 1116.1375
CNY 8.309962
CNH 8.296735
COP 4755.347136
CRC 582.003118
CUC 1.152272
CUP 30.535216
CVE 110.560981
CZK 24.586081
DJF 204.782287
DKK 7.462623
DOP 70.009948
DZD 150.953786
EGP 56.085361
ERN 17.284085
ETB 158.898459
FJD 2.612951
FKP 0.871538
GBP 0.871377
GEL 3.115584
GGP 0.871538
GHS 12.103302
GIP 0.871538
GMD 83.544179
GNF 9995.962639
GTQ 8.841155
GYD 240.997337
HKD 9.045343
HNL 30.271026
HRK 7.536442
HTG 150.799976
HUF 398.5023
IDR 18885.051685
ILS 3.933783
IMP 0.871538
INR 100.503541
IQD 1509.476717
IRR 48525.071763
ISK 142.974392
JEP 0.871538
JMD 184.775392
JOD 0.817007
JPY 170.376716
KES 149.223643
KGS 100.766656
KHR 4626.373701
KMF 497.20987
KPW 1037.022348
KRW 1603.133852
KWD 0.352008
KYD 0.959911
KZT 625.153714
LAK 24866.036704
LBP 103185.985147
LKR 347.072099
LRD 231.607134
LSL 20.752864
LTL 3.402361
LVL 0.696998
LYD 6.2396
MAD 10.490332
MDL 19.836152
MGA 5228.539982
MKD 62.136857
MMK 2418.008591
MNT 4138.311883
MOP 9.313261
MRU 45.883919
MUR 53.869166
MVR 17.749301
MWK 2000.92516
MXN 21.824994
MYR 4.928849
MZN 73.699771
NAD 21.100692
NGN 1765.869261
NIO 42.393567
NOK 11.862303
NPR 161.197503
NZD 1.955855
OMR 0.443036
PAB 1.151894
PEN 4.138218
PGK 4.852045
PHP 66.60484
PKR 326.381561
PLN 4.272833
PYG 8628.100341
QAR 4.195136
RON 5.070118
RSD 117.150417
RUB 92.180184
RWF 1659.272117
SAR 4.322265
SBD 9.499521
SCR 16.29756
SDG 691.943754
SEK 11.19879
SGD 1.488494
SHP 0.905505
SLE 26.502653
SLL 24162.578608
SOS 658.527841
SRD 42.450138
STD 23849.710246
STN 24.729581
SVC 10.079399
SYP 14981.834749
SZL 21.094837
THB 37.513421
TJS 10.868197
TMT 4.044476
TND 3.426611
TOP 2.698741
TRY 46.841748
TTD 7.807482
TWD 34.296276
TZS 2914.801889
UAH 48.152092
UGX 4129.335341
USD 1.152272
UYU 46.276604
UZS 14619.773408
VES 142.560944
VND 30212.579788
VUV 138.432431
WST 3.193915
XAF 662.103745
XAG 0.031243
XAU 0.000344
XCD 3.114074
XCG 2.076074
XDR 0.798997
XOF 662.060249
XPF 119.331742
YER 277.294748
ZAR 20.869039
ZMK 10371.837585
ZMW 26.349621
ZWL 371.031211
  • RYCEF

    -0.3800

    13.8

    -2.75%

  • CMSC

    0.0100

    22.86

    +0.04%

  • RIO

    -0.2900

    59.48

    -0.49%

  • SCU

    0.0000

    12.72

    0%

  • GSK

    0.2750

    37.425

    +0.73%

  • RELX

    -0.4200

    51.47

    -0.82%

  • BTI

    0.6250

    54.305

    +1.15%

  • AZN

    0.5750

    73.665

    +0.78%

  • BP

    -0.4300

    31.72

    -1.36%

  • NGG

    1.1950

    71.585

    +1.67%

  • VOD

    0.1350

    10.945

    +1.23%

  • SCS

    -0.1250

    10.205

    -1.22%

  • CMSD

    0.0500

    23.32

    +0.21%

  • JRI

    -0.0750

    13.055

    -0.57%

  • BCC

    -0.8700

    82.94

    -1.05%

  • RBGPF

    0.5200

    74.94

    +0.69%

  • BCE

    0.2200

    23.55

    +0.93%

Amazon profits surge 35% as AI investments drive growth
Amazon profits surge 35% as AI investments drive growth / Photo: Patrick T. Fallon - AFP/File

Amazon profits surge 35% as AI investments drive growth

Amazon reported a 35 percent jump in quarterly profits Thursday as the e-commerce giant said major investments in artificial intelligence began paying off.

Text size:

The Seattle-based company posted net profit of $18.2 billion for the second quarter that ended June 30, compared with $13.5 billion in the same period last year.

Net sales climbed 13 percent to $167.7 billion, beating analyst expectations and signaling that the global company was surviving the impacts of the high-tariff trade policy under US President Donald Trump.

"Our conviction that AI will change every customer experience is starting to play out," said Chief Executive Andy Jassy, pointing to the company's expanded Alexa+ service and new AI shopping agents.

Amazon Web Services (AWS), the company's world leading cloud computing division, led the charge with sales jumping 17.5 percent to $30.9 billion.

The unit's operating profit rose to $10.2 billion from $9.3 billion a year earlier.

The strong AWS performance reflects surging demand for cloud infrastructure to power AI applications, a trend that has benefited major cloud providers as companies race to adopt generative AI technologies.

Despite the stellar results, investors seemed worried about Amazon's big cash outlays to pursue its AI ambitions, sending its share price more than three percent lower in after-hours trading.

The company's free cash flow declined sharply to $18.2 billion for the trailing 12 months, down from $53 billion in the same period last year, as Amazon ramped up capital spending on AI infrastructure and logistics.

The company spent $32.2 billion on property and equipment in the quarter, nearly double the $17.6 billion spent a year earlier, reflecting massive investments in data centers and backroom capabilities.

Amazon has pledged to spend up to $100 billion this year, largely on AI-related investments for AWS.

For the current quarter, Amazon forecast net sales between $174.0 billion and $179.5 billion, representing solid growth of 10-13 percent compared with the third quarter of 2024.

Operating profit was expected to range from $15.5 billion to $20.5 billion in the current third quarter, which was lower than some had hoped for and likely also a factor in investor disappointment.

C.Novotny--TPP