Amazon (AMZN) Hits '50 Billion Dollar' Book Profit Jackpot...Is S&P500 Rise a 'Mirage'?

▲ Amazon (AMZN), Artificial Intelligence (AI)/AI Generated Image

Amazon.com (AMZN)'s book profit exceeding $50 billion boosted the S&P500 companies' second-quarter net income growth rate to 47.4%. The increase in the value of the stake in AI company Anthropic shook up big tech earnings.

According to MarketWatch on August 2 (local time), Amazon's second-quarter earnings per share increased by 242% year-over-year to $5.75, more than tripling the market forecast of $1.82. Unrealized gains of over $50 billion from the investment in Anthropic led to the surge in earnings.

FactSet analyzed that Amazon accounted for more than 75% of the total net income increase for all S&P500 companies last week. Reflecting the earnings of Amazon and Alphabet (GOOGL, GOOG), the S&P500 companies' second-quarter net income growth rate rose to 47.4%. Before Microsoft and Amazon's earnings announcements, it was approximately 38%.

Alphabet's second-quarter earnings per share also surged by 300%. Unrealized gains from stakes in SpaceX and Anthropic boosted its performance. Microsoft (MSFT) also reflected a $3.2 billion gain from its investment in Anthropic.

If the S&P500 companies' net income growth rate reaches 47.4%, it would be the highest level since 91.6% in Q2 2021. However, a significant portion of big tech's net income came from the appreciation of stakes in unlisted AI companies rather than from operating activities. Concerns are also growing regarding the cyclical investment structure of the AI industry and the costs associated with data center construction.

Amazon has raised its capital expenditure plan for 2026 to approximately $220 billion. Amazon CEO Andy Jassy stated, “Even with that level of investment, we won't be able to meet all demand in 2026, and the same situation will continue into 2027.” He added, “Demand in 2028 is also astonishing,” emphasizing that companies' utilization of AI is still in its early stages.

[Article Key Summary]

-Amazon's EPS surged by 242% after recording over $50 billion in unrealized gains from its stake in Anthropic.

-With Amazon's and Alphabet's earnings reflected, the S&P500 companies' Q2 net income growth rate soared to 47.4%.

-Amazon expanded its capital expenditure for 2026 to approximately $220 billion to meet AI demand.

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