Wessel Vleut @WesselV: "Amazon’s Temporary Dip – A..."

Netherlands

Amazon’s Temporary Dip – A Long-Term Opportunity After Amazon’s strong Q2 2025 earnings — beating expectations on both revenue (167.7B vs 162.1B) and EPS (1.68 vs 1.33) — the market reacted with surprise. Shares dropped over 7% in pre-market trading, driven by cautious guidance around AWS margins. But in my view, this is exactly the kind of overreaction that creates opportunity. $AMZN (Amazon.com Inc) Amazon’s key cloud unit, still posted 18% year-over-year growth to 30.8B. While Microsoft and Google made bigger AI headlines, Amazon’s cloud business remains healthy and heavily used — especially for AI workloads, which are growing rapidly. The company is also investing aggressively in AI infrastructure and next-gen projects like Project Kuiper. These moves may temporarily affect margins, but they’re laying the foundation for Amazon’s future dominance in cloud and AI. Beyond cloud, Amazon’s e-commerce and advertising divisions remain strong. Online store revenue came in at 61.4B, and the company continues to innovate with AI integrations in retail and voice (Alexa). Consumer demand has held steady, and Amazon’s updated Q3 revenue guidance (174–179.5B) came in above consensus. With a fair value estimate of 250 and the stock trading near 230, there is still clear upside. Analysts expect earnings to grow nearly 18% over the next 12 months, and with a forward P/E of around 31, Amazon remains reasonably valued among mega caps. What’s also important: global supply chains have stabilised, and recent trade agreements have eased pressure from tariffs — particularly in the US and Europe. Political uncertainty has calmed, which means capital is flowing more freely. That creates better conditions for global tech companies like Amazon to continue growing without macro headwinds. In short, this is a strong company with a temporary dip, not a broken story. Amazon remains a financially healthy, dominant tech player with long-term growth potential across e-commerce, AI, cloud computing and infrastructure. Still in my portfolio — and I believe it belongs in yours too. $QQQ (Invesco QQQ) $SPY (State Street SPDR S&P 500 ETF) $VOO (Vanguard S&P 500 ETF) $NSDQ100 $AMZN $WMT (Walmart Inc.) $SHOP (Shopify Inc.) $AAPL (Apple) $GOOGL (Alphabet Inc Class A)

Not investment advice. The author may have financial interests in the mentioned instruments.