Amazon Might Be Outspending Alphabet on AI, But It Doesn’t Makes AMZN Stock a Sell

We are now in the busiest week of the Q2 2026 earnings season. While almost a third of S&P 500 Index ($SPX) companies are set to report their earnings this week, the confessionals of Magnificent 7 stocks would attract outsized attention. Specifically, Amazon (AMZN) is set to report its Q2 earnings after markets close on July 30. AMZN stock is nearly flat for the year heading into the report. It had hit its record highs in early May, days after its Q1 earnings, and has since lost over 16% from those levels. In my previous article, I noted that while AMZN wasn’t a screaming buy, it can be nibbled at. The stock has come off slightly from those levels after last week’s selloff, driven by Q2 earnings from Alphabet (GOOG) (GOOGL) and Tesla (TSLA), both of which raised their 2026 capex budgets. Let's explore whether AMZN is a buy or a sell ahead of its Q2 earnings.

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