Amazon reported better-than-expected results in Q2, with revenue up 13% to $167.7 billion and earnings per share at $1.68, beating estimates. Despite a slight revenue beat from AWS, mixed guidance led to a stock drop. However, strong revenue growth from AWS and advertising indicates long-term potential, making the dip a buying opportunity. AWS revenue grew 17.5% to $30.87 billion, beating estimates by $91 million. Margins, however, dropped to 32.9%. Other segments saw revenue beats, such as online stores and advertising. Amazon also invested heavily in capex, expecting full-year capex of $117 billion to support AI services and its fulfillment network. Q3 guidance forecasts net sales of $174-179.5 billion, exceeding estimates, but operating income may fall short at $15.5-20.5 billion. Historically, Amazon has underpromised and overdelivered, making the top end of its outlook reassuring. The company’s focus on revenue growth from AWS and advertising, along with cost reduction efforts, continues to drive long-term value for investors.

Read more at CNBC: We’re reiterating our rating on Amazon as shares fall in the after hours