Amazon Q2 Earnings Report: Tariffs, AWS, and AI Updates

Introduction

As Amazon prepares to release their Q2 earnings report, all eyes are on the e-commerce giant. With the stock up 5% in 2025, analysts are eagerly waiting for the 5 p.m. ET call to hear updates on key areas such as AWS and AI.

Tariff Impacts on E-Commerce

One of the main concerns for investors is the impact of tariffs on Amazon's e-commerce business. With tensions rising between the US and China, there are fears that increased tariffs could lead to a decline in sales and profits for the company.

To combat this potential issue, Amazon has been diversifying their supply chain and making moves to reduce their reliance on Chinese suppliers. They have also been investing in their own logistics network to become less dependent on third-party carriers, which could help mitigate the impacts of tariffs.

AWS and AI Updates

Another area of interest for Wall Street is the performance of Amazon Web Services (AWS) and updates on their AI technology. AWS has been a major driver of growth for Amazon, and investors will be looking for continued strong performance in this segment.

In terms of AI, Amazon has been heavily investing in this technology to improve their customer experience and streamline operations. Updates on the progress and success of their AI initiatives will be closely watched by analysts and investors.