Amazon's Q2 Revenue Surges 13% to $167 Billion on Cloud, Ad Growth
Amazon has reported a 13% increase in revenue to $167 billion in the second quarter, driven by strong growth in advertising and iCloud services. Meanwhile, AI stock CoreWeave saw its revenue surge 207% to $1.2 billion, with non-GAAP operating income up 135%. Amazon's success can be attributed to its dominance in various sectors. It accounts for over 40% of U.S. e-commerce sales, 15% of digital ad spending, and 30% of iCloud infrastructure spending. The tech giant's operating margin expanded 1.5 percentage points, and GAAP net income increased 33% in the second quarter. AI plays a significant role in Amazon's growth strategy. It's integral to the company's retail, advertising, and iCloud computing operations. CoreWeave, a leader in GPU clouds or AI clouds, has seen its stock soar 230% since its IPO earlier this year, backed by Nvidia. Portfolio manager Philippe Laffont, who beat the S&P 500 by 122 percentage points over three years, bought 3.3 million shares of CoreWeave, making it his largest holding at 8%. However, he also trimmed his Amazon stake by 5%, selling 596,100 shares. Amazon's strong second quarter, boosted by AI and iCloud services, reflects the company's continued dominance in e-commerce and tech sectors. Meanwhile, AI stocks like CoreWeave are attracting significant investment, with prominent portfolio managers like Philippe Laffont increasing their stakes.
