Crude Oil Down 2%; Amazon Shares Tumble After Q2 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 01 2025
0mins
Should l Buy AMZN?
Source: Benzinga
U.S. Stock Market Performance: U.S. stocks experienced a decline, with the Dow Jones falling 1.5%, NASDAQ down 2.38%, and S&P 500 dropping 1.76%. Notable movements included Amazon's shares plummeting 8% after disappointing financial results, while Tenon Medical and Performant Healthcare saw significant gains.
Global Market Trends: European and Asian markets also closed lower, reflecting a broader trend of declining equities. Economic indicators showed a decrease in U.S. construction spending and a drop in manufacturing PMI, suggesting potential economic slowdown.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 204.790
Low
175.00
Averages
280.01
High
325.00
Current: 204.790
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Oversold Conditions: The Relative Strength Index has fallen into oversold territory, historically associated with intermediate-term rebounds, and combined with significant deviations from key moving averages, this increases the likelihood of a technical rebound toward the $220 to $230 range.
- Profitability Metrics: Amazon's forward P/E ratio stands at approximately 25x, with expected EPS growth of 25% and net margins of 10.8%, all surpassing industry averages, highlighting its robust profitability in the AI infrastructure sector.
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See More
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- Return on Investment and Cash Flow: Dutch Bros can fully fund its expansion plans through operating cash flow due to relatively low store construction costs, and with ongoing same-store sales growth, it positions itself as a high-quality long-term investment.
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- New ETF Launch: XMAG, launched on October 21, 2024, tracks the BITA US 500 ex Magnificent 7 Index, currently holding 493 stocks with net assets of $137.79 million, reflecting a rising demand for diversified investments in the market.
- Valuation Rotation Thesis: Investor Ed Yardeni's
See More
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- Revenue Milestone: Amazon (AMZN) reported $716.9 billion in revenue for fiscal year 2025, surpassing Walmart (WMT) at $713.2 billion, marking a significant shift in global retail leadership and ending Walmart's 13-year reign at the top.
- Growth Drivers: The revenue surge is attributed to the acceleration of AWS services and the continuous growth of third-party seller revenue, showcasing Amazon's robust competitiveness in technology and e-commerce, with potential for further market share expansion.
- Historical Comparison: In 2010, Amazon's revenue was just $34.2 billion compared to Walmart's $422 billion, highlighting Amazon's rapid growth and market transformation over the past decade, reflecting changing consumer shopping habits.
- Founding Background: Founded by Jeff Bezos in 1994 in a garage in Bellevue, Washington, Amazon evolved from an online bookstore to the world's largest e-commerce platform, demonstrating its innovation and adaptability to market demands.
See More
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- Sales Leadership: Amazon achieved $716.9 billion in revenue for fiscal year 2025, surpassing Walmart's $713.2 billion, marking the end of Walmart's 13-year reign at the top and highlighting Amazon's robust growth in the retail market.
- Market Reaction: Despite Amazon's record sales, its shares fell 0.1% in Thursday's pre-market trading, while Walmart's shares dropped over 3%, indicating differing market expectations for the future performance of both companies.
- Investor Sentiment: On the Stocktwits platform, investor sentiment around Amazon was trending in the 'neutral' territory, while sentiment for Walmart was 'extremely bullish', which could influence short-term stock price fluctuations for both companies.
- Industry Analysis: According to an analysis by Fortune, Amazon's revenue growth not only reflects its dominance in e-commerce but may also prompt Walmart to accelerate its digital transformation to address competitive pressures.
See More
