Amazon's stock sank on Thursday afternoon, weighed down by mixed guidance and AI competition, though the company beat Q2 earnings expectations.

Google parent Alphabet offered up its own strong results, noting cloud revenue climbed 32% and backlog, or purchase commitments from customers not yet realized, rose 38%. Search also performed better than expected during the quarter, with sales increasing 12% year over year.

The firm estimated that the AI startup Anthropic should contribute about 1 percentage point of additional growth to AWS revenue in the second half compared with the first half, +2.4% vs. +1.3%. That supports the potential for stock outperformance in the second half of 2025, the firm said.