Amazon stock investors should watch the companys capital spending and upcoming earnings after Amazon reported $200.6 billion in net sales and 37% AWS growth in the second quarter ended June 30, 2026.
Amazons July earnings release showed net sales rose 20% year-over-year to $200.6 billion and that AWS net sales increased 37%, “its fastest growth in 18 quarters,” according to the companys investor relations statement. Those results underline why analysts and shareholders are focused on cloud revenue and margins when assessing amazon stock.
Earlier in 2026 Amazon signalled a large capex buildout tied to AI infrastructure that moved markets: Reuters reported the company projected roughly $200 billion in capital spending for the year, a jump from $131 billion in 2025 that contributed to an extended trading sell-off at the time. That spending program is a central lens for investors weighing long-term returns against near-term cash flow pressure for amazon stock.
Alongside big investment plans, Amazon has also cut corporate roles: Reuters reported the company confirmed about 16,000 corporate job cuts in January 2026, part of roughly 30,000 reductions since late 2025. Investors will be watching whether those workforce changes materially lower operating costs or signal deeper restructuring ahead of the next quarterly report.
Key indicators to watch when the company reports next include AWS revenue growth and operating income, free cash flow trends and any update to capex guidance. Amazons July 30 release noted free cash flow moved to a trailing-12-month outflow driven by a year-over-year increase in purchases of property and equipment tied to AI investments, which matters for valuation of amazon stock.
Investors should also track advertising and stores momentum. The company flagged 26% advertising growth in the quarter and record delivery speeds for Prime members, which can help offset heavy infrastructure spending if those segments continue to scale profitably. For readers wanting a deeper look at AWS margins and profitability, see an earlier company-focused analysis in our coverage.
Analysts who commented when capex was first disclosed warned that markets expect clear returns from AI spending; Reuters quoted portfolio managers and analysts saying the market dislikes very large capex increases unless they translate into corresponding profit growth. That debate—growth versus cash conversion—will likely dominate near-term trading in amazon stock.
For context on market reaction and related stock coverage, see our ongoing AMZN stock roundups and an analysis of AWS operating performance in the internal coverage links below.
Sources
- Amazon Investor Relations — Q2 2026 results, net sales and AWS growth and company commentary.
- Reuters — reporting on Amazons projected $200 billion capex plan and separate Reuters report confirming 16,000 corporate job cuts.
