Amazon's Post-Q2 Earnings Rally Has Faded But Don't Give Up on AMZN Stock Just Yet

Amazon’s post–Q2 earnings rally has cooled, even as the broader “Magnificent 7” earnings cycle ended after Nvidia reported fiscal Q2 2027 results on Aug. 26. Nvidia shares jumped 8.7%, adding more than $400 billion in market value, and only Microsoft and Amazon posted double-digit gains after their June-quarter reports. The article argues Amazon’s weakness reflects an overreaction to encouraging results, including 37% year-over-year revenue growth at AWS, but also less robust guidance: Q3 guidance trailed estimates and Amazon raised its 2026 capex budget by 10% to $220 billion. The company also said it would add 2 million Nvidia GPUs between 2027 and 2028, sustaining elevated AI spending while free cash flows remain negative.