Daily Trends Now
Daily Trends Now

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.


editors' picks

July 30, 2018
NY regulators revoke Charter merger, tell them to leave
Charter also counted some addresses in other densely-populated cities like Rochester and Mount Vernon, the state claims. The commission had previously ordered Charter to pay a $2 million fine for its slow broadband rollout.

July 29, 2018
Guardiola: Man City’s Pre-Season Not Easy Without Key Players
Mohamed Salah wasted no time in returning to goalscoring form as Liverpool came from behind to beat Manchester City 2-1 in New Jersey.

July 28, 2018
California's Carr Fire Jumps Sacramento River, Reaching Outskirts Of Redding
Weekend forecasts call for brutally hot weather, with temperatures reaching 110 degrees on Saturday and Sunday. But it wasn't swift enough to spare them all. "There have been some injuries to civilians and firefighters".

July 28, 2018
Israel responds to fatal knife attack with new settler homes
There was no response from Abbas's government, which has cut ties with the Trump administration over its stance on Israel. Clashes broke out between young Palestinians and soldiers firing teargas during the raid.

July 27, 2018
Andrew Napolitano: This Trump-Cohen tape is evidence of civil fraud
Though Trump can be heard using the word "cash", the meaning behind the word's use is still a matter of dispute on both sides. The Enquirer had already purchased McDougal's account of her affair with Trump earlier in 2016 and then never published it.

July 25, 2018
Trump to Provide $12 Billion in Aid to Farmers. Critics Cry ‘Welfare!’
President Trump's tariff threats against China, Canada, Mexico and the European Union prompted immediate threats of retaliation. In response to steep tariffs imposed by the Trump administration, China has responded with tariffs of its own on American goods.

July 24, 2018
Security Council united on denuclearizing North Korea
Although it's summer, China has recently increased the oil flow to the winter levels, the source told the South Korean outlet. North Korea has accused South Korea of kidnapping them, while South Korea says they chose to resettle on their own will.

July 15, 2018
Djokovic outlasts Nadal in Wimbledon semi
Then came the full trailer in the third set, when Isner's serve was finally broken this Wimbledon after a whopping 110 games. The semi-finals follow the shock exit of fan-favourite Roger Federer on Wednesday, after he was knocked out by Anderson.

July 14, 2018
Trump arrives London on maiden visit as President
The Sun had already published audio recordings of key parts of the interview. He obviously likes me, and says very good things about me.

July 14, 2018
Belgium 0-0 England
Lukaku aside, Belgium are expected to name a mixed starting line-up of first-choice and fringe players. Kevin De Bruyne ( Belgium): How England desperately need a player like the Manchester City magician.