Why the Amazon Q2 Earnings Beat MattersNet sales reached $200.6 billion, up 20% from $167.7 billion a year earlier. Free Cash Flow Turns Negative as Capex ClimbsThe bill is plain to see. Free cash flow swung to an outflow of $7.6 billion over that period, from an $18.2 billion inflow a year earlier. Operating cash flow still grew 33% to $161.4 billion, so the draining free cash flow reflects construction rather than weakness in the underlying business. Amazon expects third-quarter sales between $197 billion and $202 billion, short of the roughly $204 billion analysts wanted.