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Amazon operates a global e-commerce platform with a large online marketplace that connects consumers to both direct sales and third-party sellers across many product categories. It earns money from product sales and marketplace fees, Amazon Prime subscriptions, and AWS cloud services, plus a large Amazon Associates affiliate network. The platform combines fast shipping, streaming, cloud computing, and digital services to reach customers across numerous countries. Its goal is to be the world’s most customer-centric company by offering convenient access to a wide range of products and services.
Company Size
10,001+
Company Stage
IPO
Headquarters
Seattle, Washington
Founded
1994
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Bank of America strategist Michael Hartnett, who coined "Magnificent 7" in May 2023, warns the tech giants' defining strength has become a weakness. The group—Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla—initially attracted investors seeking alternatives to government bonds during fiscal excess. However, massive AI spending has transformed their financial profile. Global AI investment is expected to exceed $1 trillion in 2026, with hyperscalers now spending similar amounts annually. The companies have become cash-flow negative by $200 billion and increasingly reliant on corporate credit markets. With 10-year Treasury yields near two-decade highs and 30-year yields exceeding 5.5%, rising borrowing costs directly threaten the AI spending that drives their growth. Hartnett notes they've become "subservient to the bond market"—the very asset class they once served as a hedge against.
Amazon has paused operations with cargo carrier 21 Air following a fatal crash at Miami International Airport on 6 September that killed five people. The company said it reviewed circumstances surrounding the accident before suspending the partnership, and other carriers will fill capacity gaps during the National Transportation Safety Board investigation. This marks the second fatal crash involving an Amazon-contracted cargo aircraft in seven years. An Atlas Air Boeing 767 operating for Amazon crashed in Texas in 2019, killing three crew members. Amazon made $27.5 billion of operating income in the second quarter of 2026 on revenue of $200.6 billion. The company remains the most widely held stock among hedge funds tracked by Insider Monkey, with 369 funds holding stakes worth $97.10 billion combined.
Amazon fell roughly 3% last week amid broader tech sector pressure from rising Treasury yields and questions about AI infrastructure spending returns. The company closed near $250, about 13% below its 52-week high. Amazon reportedly plans to invest $3 billion in India's quick-commerce market by 2030, though the company hasn't confirmed the figure. It also committed over $100 million to a robotics manufacturing hub in Indiana, adding 300 jobs by 2028. Second-quarter results showed revenue rising 20% to $200.6 billion, with operating income jumping 43% to $27.5 billion. AWS grew 36.7%, its fastest pace in 18 quarters. For third quarter, Amazon expects net sales of $197 billion to $202 billion and operating income of $22.5 billion to $26.5 billion. CEO Andy Jassy said the company will still lack sufficient capacity to meet all demand in 2026 despite planned capital expenditure of $220 billion.
Amazon shares dipped to $248.515 on 25 September after Anthropic announced a seven-year, $11.6 billion cloud infrastructure commitment to Akamai. The deal covers CPU workloads and includes a warrant potentially giving Anthropic a 5% stake in Akamai, with an additional $9 billion in possible future business. The arrangement does not indicate Anthropic is moving existing workloads away from Amazon Web Services. Amazon reported $53.4 billion in non-operating pre-tax other income in the second quarter, primarily from its Anthropic investments. Whilst Amazon benefits from Anthropic's rising valuation through its investment stake, the cloud infrastructure contract highlights that backing an AI company does not guarantee capturing its entire computing budget.
Amazon is expanding its satellite internet business, Amazon Leo, adding six more launches with Arianespace to bring total commitments to 24. The company already has about 400 satellites in orbit and plans to start providing internet connectivity this year. This puts Amazon in direct competition with SpaceX's satellite internet business, which generated $4.3 billion in revenue in the second quarter, up 66% year over year. The segment posted $1.7 billion in operating income, making it SpaceX's most profitable unit. SpaceX estimates a $1.6 trillion addressable market for satellite internet connectivity. Amazon's profitability and cash flow could allow it to sustain losses whilst building out its constellation, leveraging other business units to fund expansion.