AWS is now Amazon's main profit driver: second-quarter AWS sales rose 37% to $42 billion, making up 21% of Amazon's sales but 60% of its operating income. Still, Amazon plans $220 billion in capital expenditures this year, and trailing 12-month free cash flow turned negative at a $7.6 billion outflow. CEO Andy Jassy said capacity still won't meet demand this year or next, and the third-quarter report is set for October 29. At about 29x forward earnings, down from over 34x a few months ago, the article argues Amazon may still suit long-term investors comfortable with volatility, while risk-averse investors could start with a smaller position and add over time.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Amazon’s ‘Safe’ Retail Business Earns Less Than AWS Does. Is the Stock Still a Good Buy for Cautious Investors?
Read the original on Yahoo Finance ↗
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Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/26/2026 | 249.01 |
| Change that session | +0.41% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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