Amazon's stock has been volatile recently, with a significant drop following its Q2 2024 results. Despite this, the company's fundamentals remain strong, offering a compelling long-term investment opportunity.

### Amazon's Q2 2024 Results

- **Revenue**: $147.98 billion, a 10.1% YoY increase, but the lowest growth in five quarters.
- **Operating Income**: $6.9 billion, a 27.5% increase YoY.
- **EPS**: $1.26 per share, beating analyst estimates by $0.24.

### Key Factors

1. **Cloud Growth**: Amazon Web Services (AWS) reported a 19% YoY increase in revenue, with a growth acceleration of 2 PP.
2. **Operating Income Momentum**: AWS is on track to generate more than $40 billion in run-rate operating income in the next twelve months.
3. **Mixed Results**: While revenue missed expectations, EPS beat estimates, indicating a robust operating income growth.

### Market Reaction

- **Stock Price**: Amazon's stock price dropped by over 8.3% in the week following the results, with a current price of $143.50.
- **Investor Sentiment**: Investors are underestimating the potential for operating income growth, which could drive incremental valuation.

### Future Outlook

- **Growth Potential**: Amazon is projected to grow its earnings at an annual rate of 23%, second only to Nvidia's 33%.
- **Competitive Advantages**: AWS continues to dominate the market, with strong contract wins and a robust cloud business.

### Conclusion

Amazon's recent stock price drop presents a buying opportunity for long-term investors. Despite the revenue miss, the company's strong cloud growth and operating income momentum indicate a bright future. With a current stock price of $143.50, Amazon offers a solid foundation for growth and a potential upside of over 50%.