Amazon Q2 Earnings Exceed Expectations, AWS Hits Fastest Growth in 18 Quarters
Amazon's second-quarter earnings report shows revenue and profit both surpassed expectations, with AWS cloud business achieving the highest growth in 18 quarters, primarily driven by strong demand for AI infrastructure. Additionally, advertising revenue grew by 26% year-on-year.
What are the key facts?
- 1AWS Growth: 20.2% (year-on-year)
- 2Advertising Revenue: Grew by 26%, nearing $20 billion
- 3Core Driver: Demand for AI infrastructure
What happened?
Amazon reported strong performance in its second-quarter earnings. AWS cloud business grew by 20.2% year-on-year, achieving the fastest growth in 18 quarters, largely due to ongoing investments in AI infrastructure. Furthermore, Amazon's advertising revenue increased by 26% year-on-year, nearing $20 billion, indicating robust growth in its retail media sector.
What does this mean for cross-border sellers?
The continued growth of Amazon's advertising business signifies increased competition, compelling sellers to optimize their advertising strategies and utilize AI tools to enhance conversion efficiency.