10:54 AM EDT, 08/01/2025 (MT Newswires) -- Amazon.com's ( AMZN ) Amazon Web Services could accelerate in Q3 as the company "is still capacity constrained," BofA Securities said in a note Friday.

The firm also noted that AWS added the second most revenue dollars in its history in Q2 on a sequential basis despite capacity constraints.

For Q2, AWS growth accelerated 60 basis points quarter over quarter to 17.5% and slightly beat consensus, BofA said.

But AWS didn't have a top-line beat supported by capacity similar to Microsoft's (MSFT) Azure and Alphabet's (GOOG, GOOGL) Google Cloud Platform, the firm said.

BofA raised its price objective on Amazon ( AMZN ) to $272 from $265 and maintained its buy rating.

The company's shares were down over 6% in recent trading.

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