LOGIN

Amazon reports better-than-expected revenue and profits for 2Q, sending its stock higher

by Michael Nguyen
5 comments
fokus keyword Amazon

On Thursday, Amazon released its financial results for the second quarter, revealing that it had outperformed expectations with respect to revenue and profits. The announcement sent the company’s stock climbing in after-hours trading.

For the quarter that ended on June 30, the online retail giant generated a profit of $6.7 billion or 65 cents per share. This figure is considerably higher than the anticipated $3.64 billion forecasted by industry analysts from FactSet.

During the same time last year, Amazon reported a loss, primarily due to a significant loss on its investment in Rivian Automotive, the electric vehicle start-up. The profits for this year’s second quarter also included a pre-tax gain of $200 million on its Rivian investment.

In recent months, Amazon has been engaged in aggressive cost-cutting measures. Its total revenue reached $134.4 billion, an 11% increase compared to the previous year, and surpassed the analysts’ expected growth of 8.5%.

“Another strong quarter of progress for Amazon,” commented CEO Andy Jassy.

Amazon’s cloud division, AWS, which has been a point of focus for investors, posted revenue of $22.1 billion. Despite the growth slowing down from previous quarters, Jassy noted that it had “stabilized,” and he emphasized the shift from cost optimization to deploying new workloads.

In the AI domain, Amazon has been launching tools to attract more customers and keep pace with competition. The company recently announced that its AI model called Amazon Bedrock is being utilized by Ryanair, among other businesses.

The company’s main online retail sector grew by 5%, and its physical stores’ sales, including Amazon Fresh and Go stores and Whole Foods, rose by 7%. Amazon has expressed strong interest in the grocery sector but is yet to seize a significant market share.

CFO Brian Olsavsky discussed the company’s focus on customer value, and improvements in delivery speeds were noted under a new regionalization model. More than half of Prime orders in the top 60 U.S. metro areas were delivered either the same day or the next during the second quarter, which was celebrated as the fastest Prime speed to date.

Further plans to boost same-day delivery sites were announced, and the company disclosed its intentions to expand in the grocery sector, including offering grocery deliveries to non-Prime members.

Looking forward, Amazon expects its revenue to fall between $138 billion and $143 billion for the third quarter.

Frequently Asked Questions (FAQs) about fokus keyword Amazon

What were Amazon’s revenue and profits for the second quarter?

Amazon’s revenue for the second quarter was $134.4 billion, up 11% from the same period last year, and the profits were $6.7 billion or 65 cents per share.

How did Amazon’s investment in Rivian Automotive affect the 2Q profits?

The profits for the second quarter included a pre-tax valuation gain of $0.2 billion in Amazon’s investment in Rivian Automotive. This was in contrast to a loss during the same period last year due to a significant loss on this investment.

What is the growth percentage in Amazon’s cloud unit, AWS?

AWS grew by 12% in the second quarter, which was slower compared to 16% in the first quarter and 33% during the same time last year.

How has Amazon improved its delivery speeds?

Amazon implemented a new regionalization model with eight regions across the country serving smaller areas. This has helped in cutting costs and getting items to Prime customers quicker. More than half of Prime orders in the top 60 U.S. metro areas arrived the same day or the next during the second quarter.

What are Amazon’s ambitions in the grocery sector?

Amazon aims to be a major player in the grocery sector and has been working on integrating orders from Whole Foods and Amazon’s other grocery stores into one cart. It’s also offering grocery deliveries to non-Prime members and has plans to expand its Fresh and Go chain.

More about fokus keyword Amazon

You may also like

5 comments

Emily J. August 6, 2023 - 10:42 am

anyone else see the potential in their grocery sector? Looks like they’re making big moves there.

Reply
Greg O'Donnell August 6, 2023 - 11:04 am

its all about AI tools these days. Amazon seems to be playin catchup though. Why’s that?

Reply
MarkT August 7, 2023 - 12:27 am

Those new delivery times are insane. same day or next day. I’ve noticed it myself, it’s awsome.

Reply
John Smith August 7, 2023 - 3:28 am

Wow! Amazons profits are through the roof! Didn’t expect this kind of growth in the cloud segment, even if its a bit slower.

Reply
Karen B August 7, 2023 - 4:50 am

So they made a gain in Rivian this time, last year they lost. What a turnarund.

Reply

Leave a Comment

logo-site-white

BNB – Big Big News is a news portal that offers the latest news from around the world. BNB – Big Big News focuses on providing readers with the most up-to-date information from the U.S. and abroad, covering a wide range of topics, including politics, sports, entertainment, business, health, and more.

Editors' Picks

Latest News

© 2023 BBN – Big Big News

en_USEnglish