Amazon's after-hours stock price fell, disappointing profit outlook due to investment in artificial intelligence

Amazon's profit outlook falls below analysts' expectations, increasing investment to meet the demand for AI services. The stock price fell after hours. The company announced on Thursday that in the fiscal quarter ending in September, operating profit will be between $11.5 billion and $15 billion. The analysts' average estimate is $15.7 billion. Third-quarter sales are expected to be between $154 billion and $158.5 billion, an increase of 8% to 11%, while the analysts' average estimate is $158.4 billion. CEO Andy Jassy has been cutting costs, focusing on the profitability of the company's core online retail business, while investing heavily in AI services. Sales in the Amazon Web Services cloud division surged 19% to $26.3 billion, exceeding expectations, marking the second consecutive quarter of sequential growth. The strong performance of the cloud computing business was offset by weakness in Amazon's core e-commerce business. Revenue from Amazon's seller services and advertising fell below expectations. Second-quarter revenue increased by 10% to $148 billion, while the analysts' average estimate was $148.8 billion. The company's operating profit was $14.7 billion. Bloomberg compiled data shows that analysts' average estimate was around $13.6 billion. Amazon's operating expenses increased by 5.2% to $133.3 billion, lower than Wall Street's estimates. The company's workforce exceeded 1.53 million, a 5% increase. The stock fell by about 5% in after-hours trading in the New York market, closing at $184.07 before. As of the close, the stock has risen 21% year-to-date