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Amazon posts big Q2 earnings beat but misses revenue target

Amazon posts big Q2 earnings beat but misses revenue target

Olsavsky attributed the slowdown to a hard comparable period a year ago when Amazon lowered the price threshold for free shipping, responding to competitive pressure from Walmart Inc. The company drew $1.64bn in operating income off $6.1bn in AWS revenues, compared to $1.83bn in operating income off $32.1bn in North American net sales.

"AWS had its third consecutive quarter of accelerating growth, of which 49 percent FX-neutral growth".

"I would say that, in addition to the operating efficiencies, advertising is also starting to make an impact on gross profit".

Looking ahead, Credit Suisse sees huge potential upside for Amazon in several newer verticals the company has doubled-down on in more recent years.

Amazon continues to invest heavily in a multitude of sectors, emphasizing growth and expansion especially when it comes to its voice shopping devices. The company for years was notorious for roller-coaster results. "We're really pleased with the retail growth", Olsavsky said, "We think it's driven by the Prime program and the engagement of Prime customers as well as increased selection, particularly third-party selection".

Amazon's total costs increased almost 37 per cent in the three months ending in June to $49.9bn, as the firm invested heavily into its premium service Prime across its online video, warehouse and delivery infrastructure. According to the company, revenue from the category and some other items grew 132 percent to US$2.2 billion.

The company is working to automate tasks for advertisers and to help media buyers measure the results, Olsavsky said. Small and medium-sized businesses selling as part of Amazon marketplace exceeded $1.5 billion in sales during the Prime Day event. Amazon expects revenue in the range of $54 billion to $57.5 billion in the third-quarter, slightly below street estimates of between $55.6 billion to $62.2 billion. When asked about the deal Thursday, Amazon executives gave no details on its plans for PillPack.

"It's really becoming the crown jewel of Bezos' empire", said GBH Insights analyst Daniel Ives.

Investors are starting to take notice.

While cloud rivals are gaining ground, AWS remains far in front with 31 percent of the fast-expanding market, versus 18 percent for Microsoft Corp (MSFT.O) and 8 percent for Google in the second quarter, research firm Canalys said Thursday. The deal is expected to close later this year. This revenue increase missed analysts' targets by half a billion dollars, but the earning per-share muted concerns. (NASDAQ:AMZN) were released by: Nasdaq.com and their article: "Is Amazon (AMZN) Outperforming Other Retail-Wholesale Stocks This Year?" published on July 24, 2018 as well as Thestreet.com's news article titled: "6 Reasons Amazon Is an Investor's Dream" with publication date: July 24, 2018.

Synergy claims that the overall spend on cloud infrastructure services is now more than $16bn per quarter.

Hiking the annual US price of Prime 20 per cent during the second quarter showed few signs of discouraging sign-ups: the company said subscription revenue increased 57 per cent to $3.4 billion.

Net income rose to $2.53bn (£1.9bn), or $5.07 per share, in the second quarter ending June 30, surging way past the $2.48 per share Wall Street analysts had expected, and up from $197m (£150m), or 40 cents per share, a year earlier.


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