JPM TECH SKETCH: AMZN AWS ROIC Rocketing, RDDT Q2 Marred by GOOGL, RBLX Q2 Not the Bottom, LYV & SPHR Q2 Solid

Research evidence excerpt

JPM TECH SKETCH: AMZN AWS ROIC Rocketing, RDDT Q2 Marred by GOOGL, RBLX Q2 Not the Bottom, LYV & SPHR Q2 Solid

Specialist Sales J P M O R G A N

31 July 2026

- AMZN Q226 Earnings – EPS Estimates are Going Higher: Yes, I could have titled this earnings review ‘AWS Beats’

because it surely did, but I think the ‘real’ highlight of this print is the fact that Operating Income beat the high end of the

guide by $3.5B (largely due to an AWS Revenue and Margin beat). Buyside/Sell Side EPS estimates are going higher – and

so too is the stock, now up +11% pre-market (on the back of a +4% day). The hyperscalers are making a comeback…

From Doug’s AMZN Q226 Earnings – AI Investments Show Returns: “Importantly, management emphasized that the ROIC

on its AI investments is compelling and it has a clear line-of-sight to strong financial returns…”

- RDDT Q226 Earnings – The DAU Debate Rages On: RDDT is trading down -12% pre-market despite crushing Revenue

and Adj. EBITDA on both the print and the guide. The culprit? US DAUs. US Logged-In declined -100K Q/Q and US

Logged-Out declined -200K Q/Q. That’s a no-no. Internet investors have always and will always pay premiums for

volume-driven stories – and put discounts on price-driven stories. With US DAUs going backwards (for just one

quarter?), the debate on RDDT will continue to rage on… Check out Doug’s RDDT Q226 Earnings – Traffic Challenges

Resurface.

- RBLX Q226 Earnings – Not the Bottom: RBLX is plummeting -20% pre-market off the back of a modest Q226

Bookings miss coupled with a Q326 Bookings guide that I can only describe as terrible. Combine that with a removal of the

2026 Bookings guidance (originally +8% to +12% Y/Y…clearly way lower now) and you have the stock falling off yet

another cuboid-shaped cliff.