Last updated on August 8, 2023
Amazon (AMZN) reported stronger-than-expected second quarter earnings, with net income of $6.7 billion or 65 cents per share. This is a significant improvement from the loss of 20 cents per share in the same period last year. Revenues for the quarter reached $134.4 billion, a 10.9% increase from last year, surpassing analysts’ estimates.
The company’s cloud services division, Amazon Web Services, contributed $22.1 billion in revenues, a 12% increase from last year. Although there was a slight slowdown in growth compared to the previous quarter, it still exceeded expectations. Online sales reached $51.1 billion, a 0.5% increase, indicating a modest improvement in consumer spending. Additionally, ad sales rose by 8.6% to $9.51 billion.
Looking ahead to the next quarter, Amazon forecasts operating income between $5.5 billion and $8.5 billion on revenues ranging from $138 billion to $143 billion. The company’s CEO, Andy Jassy, highlighted the progress made in the quarter, particularly in cost reduction and delivery speed improvements. He also mentioned the stabilization of AWS growth and the strong demand for advertising services.
Following the earnings release, Amazon’s shares rose by 7% in after-hours trading, suggesting a positive market reaction. The stock’s year-to-date advance is estimated to be around 65%.
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