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

Amazon.com reported solid second-quarter earnings that beat expectations Thursday afternoon.Earnings rose to $1.68 a share versus Wall Street’s consensus estimate of $1.33, according to FactSet, and were up from $1.

An increase in Amazon Web Services spending cut into the cloud giant’s profits in the second quarter as AWS raced to meet demand for AI against Microsoft, Google, and others.

Amazon.com Inc. projected operating income in the current quarter that fell short of analysts’ estimates, worrying investors that the tech giant is spending too much to keep up with competitors in the race for artificial intelligence.