Amazon just delivered 2Q results which blew away Street expectations on the margins/bottom-line while coming in generally in-line on the headline revenue number. Total revenue of $52.89 billion was basically in-line with the Street’s $53.37 billion estimate although the bulls were hoping for a beat, while EPS of $5.07 handily beat the Street’s $2.48 estimate. On the top-line, North America consumers came in at $32.17 billion, in-line with the Street with international revenues of $14.6 billion coming in a bit shy of the Street’s $15.1 billion estimate as this continues to be a linchpin of future growth and investments. AWS revenues of $6.1 billion beat the Street’s estimate of $6.0 billion as the Bezos cloud machine continues to have massive tailwinds heading into 2H18/2019 with the two-horse race with Microsoft Azure for a transformational cloud market opportunity on the horizon. On the operating margins, Amazon came in at 5.6%, blowing away the Street’s 3.2% estimate as the profitability picture is starting to “significantly ramp” at the company which is music to ears of investors that have long awaited this inflection point. In terms of 3Q guidance, the company guided to revenues of between $54.0 billion and $57.5 billion vs. the Street at $58.1 billion, with a 30 bps FX headwind. Operating income is expected to be between $1.4 billion and $2.4 billion vs. the Street at $1.25 billion. Overall, we would characterize these results as strong, with the bulls likely a bit disappointed that a “beat and raise” on the topline did not materialize. AWS was the star of the show yet again, with North American retail in-line while international had some soft spots. Importantly, the massive beat on the margins/EPS and healthy profitability outlook going forward will be a major positive that investors will focus on when digesting results. In a nutshell, after the Facebook debacle last night we believe the Street will be somewhat relieved to see Amazon deliver another strong quarter as the secular tailwinds on both the consumer and enterprise fronts are massive for Bezos & Co. going forward. The profitability trajectory appears to be accelerating quicker than expected which given the leverage in the Amazon model is a “potential game changer” that could translate into further multiple expansion. We look forward to hearing more details on the call around the consumer e-commerce dynamics, Prime membership trends, AWS strength, and the international build out. We maintain our Highly Attractive rating and $2,000 price target.