[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Jukan [@Jukanlosreve](/creator/twitter/Jukanlosreve) on x 22.8K followers Created: 2025-07-24 23:53:14 UTC Amazon Outlook: AWS Growth to Drive H2 Acceleration, Retail and Advertising Margins Continue to Improve Citi (R. Josey, 25/07/22) Citi believes Amazon will deliver better-than-expected revenue and operating profit performance in its Q2 2025 earnings report, with a key focus on the uplift from AWS infrastructure deployment for second-half growth. Meanwhile, Prime Day is expected to drive a retail rebound, strong advertising demand, and improved operational efficiency, all contributing to margin expansion. AWS Infrastructure Deployment Lays Foundation for H2 Growth Citi expects Q2 2025 AWS revenue to grow XXXX% year-over-year, slightly below buyer expectations of 17%, but emphasizes that management's commentary on second-half growth is more crucial. Especially with sustained GenAI demand and the Anthropic contract expanding to $X billion ARR, AWS is poised for re-acceleration. A significant portion of the approximately $XX billion in 2025 CapEx will also be allocated to AWS infrastructure construction. Retail Demand Rebounds, Prime Day Provides Additional Growth Momentum Prime Day's contribution to retail growth is over XXX basis points, with total retail revenue expected to grow +9% year-over-year in North America and +11% internationally. Citi credit card data shows continued acceleration in "multi-category store" spending in Q2, with year-over-year growth rising to XXXX% in mid-July, confirming the trend of rebounding consumer momentum. Advertising Business Continues Strong Growth, Driving High-Margin Structure Improvement Q2 2025 advertising revenue is expected to grow XXXX% year-over-year, excluding currency effects. Channel checks indicate strong demand for Sponsored Listings, Prime Video, and DSP advertising. Notably, partnerships with Roku and Disney have expanded advertising distribution channels, with the advertising business providing a substantial boost to overall margins. Operating Profit Continues to Exceed Upper Guidance, Operational Efficiency Continues to Improve Citi forecasts Q2 2025 operating profit at $XXXX billion, with a margin of 10.5%, close to the upper end of guidance. Amazon has exceeded the high end of its guidance by over $XXX billion in six of the past eight quarters. Operating cost control is good, with automation deployment (such as Vulcan robots) improving efficiency. Coupled with the increasing proportion of advertising and AWS, these factors jointly drive continuous improvement in profitability. North American Retail Margins Gradually Expanding, Long-Term Trend Optimistic While Citi conservatively estimates that North American retail (excluding advertising) margins will only reach X% after 2030, there has been positive progress, including $X billion investments in suburban fulfillment centers and robot deployments exceeding the number of warehouse employees. These measures are expected to drive continuous upward operational efficiency. Even with additional costs from the Kuiper project, overall retail margins are likely to continue improving. XXXXX engagements  **Related Topics** [q2](/topic/q2) [amazon web services](/topic/amazon-web-services) [Post Link](https://x.com/Jukanlosreve/status/1948531955068535219)
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Jukan @Jukanlosreve on x 22.8K followers
Created: 2025-07-24 23:53:14 UTC
Amazon Outlook: AWS Growth to Drive H2 Acceleration, Retail and Advertising Margins Continue to Improve Citi (R. Josey, 25/07/22)
Citi believes Amazon will deliver better-than-expected revenue and operating profit performance in its Q2 2025 earnings report, with a key focus on the uplift from AWS infrastructure deployment for second-half growth. Meanwhile, Prime Day is expected to drive a retail rebound, strong advertising demand, and improved operational efficiency, all contributing to margin expansion.
AWS Infrastructure Deployment Lays Foundation for H2 Growth
Citi expects Q2 2025 AWS revenue to grow XXXX% year-over-year, slightly below buyer expectations of 17%, but emphasizes that management's commentary on second-half growth is more crucial. Especially with sustained GenAI demand and the Anthropic contract expanding to $X billion ARR, AWS is poised for re-acceleration. A significant portion of the approximately $XX billion in 2025 CapEx will also be allocated to AWS infrastructure construction.
Retail Demand Rebounds, Prime Day Provides Additional Growth Momentum
Prime Day's contribution to retail growth is over XXX basis points, with total retail revenue expected to grow +9% year-over-year in North America and +11% internationally. Citi credit card data shows continued acceleration in "multi-category store" spending in Q2, with year-over-year growth rising to XXXX% in mid-July, confirming the trend of rebounding consumer momentum.
Advertising Business Continues Strong Growth, Driving High-Margin Structure Improvement
Q2 2025 advertising revenue is expected to grow XXXX% year-over-year, excluding currency effects. Channel checks indicate strong demand for Sponsored Listings, Prime Video, and DSP advertising. Notably, partnerships with Roku and Disney have expanded advertising distribution channels, with the advertising business providing a substantial boost to overall margins.
Operating Profit Continues to Exceed Upper Guidance, Operational Efficiency Continues to Improve
Citi forecasts Q2 2025 operating profit at $XXXX billion, with a margin of 10.5%, close to the upper end of guidance. Amazon has exceeded the high end of its guidance by over $XXX billion in six of the past eight quarters. Operating cost control is good, with automation deployment (such as Vulcan robots) improving efficiency. Coupled with the increasing proportion of advertising and AWS, these factors jointly drive continuous improvement in profitability.
North American Retail Margins Gradually Expanding, Long-Term Trend Optimistic
While Citi conservatively estimates that North American retail (excluding advertising) margins will only reach X% after 2030, there has been positive progress, including $X billion investments in suburban fulfillment centers and robot deployments exceeding the number of warehouse employees. These measures are expected to drive continuous upward operational efficiency. Even with additional costs from the Kuiper project, overall retail margins are likely to continue improving.
XXXXX engagements
Related Topics q2 amazon web services