Amazon Stock (AMZN): AWS Surges and AI Spending Risk
Amazon (AMZN) stock is now judged by the market mainly through one question: how fast is AWS growing compared with how much money is being spent on AI data centers. In the second quarter of 2026, AWS grew 37% to US$42.2 billion and contributed about 60% of Amazon's operating income. On the other side, Amazon's free cash flow over the last 12 months is negative US$7.6 billion because of very large capital spending. This article covers both sides.
You will read about Amazon's business, its latest financial results, valuation, risks and catalysts, and how to follow its price through the AMZN token on Mobee. For comparison with other tech giants, read Microsoft stock and Alphabet stock.
Key Takeaways
- Amazon reported Q2 2026 net sales of US$200.6 billion (up 20%) and operating income of US$27.5 billion (up 43%).
- AWS grew 37% to US$42.2 billion with operating income of US$16.6 billion. Net income of US$62.6 billion was heavily boosted by non-operating gains on the Anthropic investment.
- The main risks: negative trailing 12-month free cash flow of US$7.6 billion, AI capital spending that keeps rising, and the payoff from that investment being uncertain.
- The AMZN token on Mobee gives economic exposure to the Amazon share price, not ownership of the share itself.
- This article is for information and education only, not a recommendation to buy or sell.
What Does Amazon Sell?
Amazon has three main business engines: online retail and logistics (the North America and International segments), the AWS cloud service, and advertising. According to the Q2 2026 report, AWS is small in sales but large in profit:
| Segment | Q2 2026 sales | Growth | Operating income |
|---|---|---|---|
| AWS | US$42.2 billion | up 37% | US$16.6 billion (last year US$10.2 billion) |
| North America | US$116.2 billion | up 16% | US$9.1 billion (last year US$7.5 billion) |
| International | not stated in this table | up 15% | US$1.7 billion (last year US$1.5 billion) |
Source: Amazon Q2 2026 earnings release, July 30, 2026. We do not state International segment sales because two sources we read gave the same figure as AWS, which needs rechecking. Advertising revenue rose 26% from the previous year.
From the figures above, AWS is only about 21% of total sales but about 60% of the US$27.5 billion operating income (our calculation). That is why AWS's growth speed strongly shapes how the market values Amazon. According to an analyst summary, AWS capacity for 2026 is almost sold out.
Amazon is not the only one betting on AI cloud; compare it with Microsoft and Alphabet, and with specialist providers such as CoreWeave.
Latest Financial Performance
| Measure | Q2 2026 | A year earlier |
|---|---|---|
| Net sales | US$200.6 billion | US$167.7 billion |
| Operating income | US$27.5 billion | US$19.2 billion |
| Net income | US$62.6 billion | US$18.2 billion |
| Earnings per share (diluted) | US$5.75 | US$1.68 |
| Operating cash flow (trailing 12 months) | US$161.4 billion | US$121.1 billion |
| Free cash flow (trailing 12 months) | negative US$7.6 billion | positive US$18.2 billion |
Source: Amazon, July 30, 2026.
Read net income with care. Net income of US$62.6 billion includes pre-tax non-operating income of US$53.4 billion, mainly from Amazon's investment in Anthropic. That is a fair value gain (non-cash), not a result of retail or cloud sales. To judge the core business, operating income of US$27.5 billion is more relevant.
Capital spending. According to an analyst summary, Amazon raised its 2026 capital spending estimate to about US$220 billion from US$200 billion, mostly for AI data centers. This spending is what makes trailing 12-month free cash flow negative even though operating cash flow rose 33%.
Q3 guidance: net sales of US$197 billion to US$202 billion (growth of 9% to 12%) and operating income of US$22.5 billion to US$26.5 billion, compared with US$17.4 billion a year ago. Guidance is a company estimate, not a guarantee.
Valuation and Price Movement
We could not find a verifiable Amazon closing price for this week. For reference, Amazon's market capitalization was reported to have crossed US$3 trillion on August 3, 2026, after the second-quarter report. On Mobee, the AMZN token is around Rp4.68 million as of October 22, 2026.
Valuing Amazon works differently from chip stocks: some people value it on AWS growth, others on advertising and retail margins. Because net income is distorted by the Anthropic gain, a price-to-earnings (P/E) ratio based on GAAP net income can be misleading. We give no price target or rating.
Risks and Catalysts
Risks
- Negative free cash flow. Trailing 12-month free cash flow is negative US$7.6 billion because of capital spending. If spending keeps rising without matching AWS growth, that pressure stays.
- The payoff from AI spending is uncertain. New data center investment only produces revenue after several years, and AI demand could slow.
- Non-recurring gains. The fair value gain from Anthropic could reverse if the investment's value falls.
- Slower sales growth in guidance. Q3 guidance implies growth of 9% to 12%, lower than 20% in Q2.
- Legal and regulatory risk. According to an analyst summary, the New Jersey state attorney general filed an antitrust suit against Amazon, and other states or countries could follow.
- Cloud competition. Microsoft and Alphabet compete closely in cloud and AI.
Catalysts
- Q3 2026 results on October 29, 2026 (according to Amazon's official page).
- The speed of AWS growth and the use of newly built capacity.
- The direction of capital spending in 2026 and 2027.
- Advertising growth and retail segment margins.
Amazon on Mobee: A Tokenized Stock, Not the Share Itself
On Mobee you can trade the AMZN token, a US tokenized stock issued by Ondo that gives economic exposure to the Amazon share price. As of October 22, 2026, one AMZN token on the AMZN/IDR pair is around Rp4.68 million.
What to understand before buying:
- The AMZN token is not Amazon stock. You do not become a registered shareholder and get no voting rights.
- The token is issued by Ondo with certain issuer terms and restrictions. Read the product terms on Mobee before buying.
- The token price tracks its reference share but can differ slightly, especially when the US market is closed. See what time the US market opens.
- There are issuer, custodian, smart contract, and rupiah-US dollar exchange rate risks, and specific OJK rules for tokenized assets are still developing. Further reading: US tokenized stocks vs regular stocks, US stock tokenization, and RWA regulation, tax, and risks in Indonesia.
Because earnings reports can move prices sharply, consider your amount and risk limit before October 29 (beginner risk management mistakes).
Frequently Asked Questions
What is Amazon (AMZN) stock?
Amazon.com is a US company with online retail, logistics, the AWS cloud service, and advertising businesses. Its shares are listed on Nasdaq under the ticker AMZN.
How did Amazon perform financially most recently?
In the second quarter of 2026, Amazon's net sales were US$200.6 billion (up 20%), operating income was US$27.5 billion, and AWS grew 37% to US$42.2 billion. Net income of US$62.6 billion includes US$53.4 billion of non-operating income, mainly from the investment in Anthropic.
What is the biggest risk for Amazon stock?
Trailing 12-month free cash flow of negative US$7.6 billion because of AI capital spending, the uncertain payoff from that investment, net income boosted by non-operating gains, and legal and regulatory risk.
Is buying the AMZN token on Mobee the same as owning Amazon stock?
No. The AMZN token gives economic exposure to the Amazon share price, but it is not the share itself and carries no shareholder voting rights. The token is issued by Ondo with certain terms and restrictions.
When is Amazon's next earnings report?
According to Amazon's official page, Q3 2026 results are scheduled for October 29, 2026. Confirm the date on Amazon's investor relations site.
Conclusion
Amazon is now a story about AWS and AI: cloud growth is accelerating and operating income is rising, but capital spending is so large that free cash flow is negative. The very high net income comes largely from investment gains, so look at operating income to judge the core business. Use this article to understand the business, not as a reason to buy, and remember that the AMZN token on Mobee is not the share itself.
Disclaimer
This article is for information and education only. It is not investment, legal, or tax advice, nor an invitation to buy or sell any asset. Crypto assets and tokenized real-world assets are high-risk instruments with large volatility. Token values can rise or fall, and you may get back less than you invest. Do your own research and use only funds whose risk you can afford to bear. Mobee is operated by PT CTXG Indonesia Berkarya, which is licensed and supervised by the Indonesian Financial Services Authority (OJK).
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