{
  "id": 18838,
  "title": "Amazon's Q2 was great, but the earnings release is packed with baloney",
  "url": "https://urgent.news/2026/07/31/amazons-q2-was-great-but-the-earnings-release-is-packed-with-baloney-18838",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-07-31T00:08:45.000Z",
  "source": {
    "name": "The Register Science",
    "slug": "the-register-science",
    "url": "https://www.theregister.com/paas-and-iaas/2026/07/31/amazon-q2-earnings-strong-results-much-baloney-in-press-release-corey-quinn/5281486"
  },
  "original_language": "en",
  "account": "Amazon released its Q2 earnings report, yet the document is riddled with misleading statements. This report, available in full [PDF], highlights how AWS made its \"spec-drive coding agent, Kiro, available on iOS.\" However, this claim is often mistaken for a truth, as Kiro can only be accessed via Apple's TestFlight, and there is no iOS page in the App Store showcasing the product. The delay in Kiro's availability is likely due to Apple's strict App Store policies, but in an earnings statement, such embellishments are questionable. The report also boasts that AWS and its AI business each exceed $25 billion in revenue, without clarifying if these figures overlap. Furthermore, Bedrock's statement that customers spent more in Q2 than all previous quarters combined might seem impressive until one realizes it merely compares 90 days to the preceding 10 quarters. The AWS operating margin of 39.4% was higher than analyst estimates, but this figure includes mark-to-market gains from energy derivative contracts accounting for roughly $600 million. When this gain is excluded, AWS margins revert back to the range previously modeled by analysts. In response to the hedges paid off by Amazon on electricity costs, CFO Brian Olsavsky noted these adjustments had not been significant in prior quarters. The chips business, which sells no physical chips, is described as generating $25 billion in revenue. This is due to EC2 instance rentals, Bedrock, SageMaker, and other services that are not direct chip sales. Amazon CEO and AI Marketing Manager, Jeffrey P. Bezos, expressed concern over rising component costs, particularly memory, which marginally contributes to the chips business. Additionally, a significant part of Bedrock's workloads are running on Trainium, leading to a triple-brag for the same thing. Amazon's CEO stated that there is a real chance of selling Trainium to third parties in the future, but for now, they have not sold a single chip.",
  "summary": "\"Tell me lies, tell me sweet little lies\"",
  "key_points": [
    "AWS's Kiro AI tool only accessible via Apple's TestFlight, not iOS App Store",
    "AWS and AI businesses each exceed $25 billion in revenue, but overlap unclear",
    "AWS operating margin of 39.4% includes $600M mark-to-market gains from energy contracts"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Register",
        "title": "Amazon's Q2 was great, but the earnings release is packed with baloney",
        "url": "https://urgent.news/2026/07/31/amazons-q2-was-great-but-the-earnings-release-is-packed-with-baloney",
        "published": "2026-07-31T00:08:45.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}