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Amazon Q2 earnings



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Amazon ( AMZN ) reported mixed second-quarter results on Thursday, which sent the shares lower as profits fell below Wall Street's estimates, even when revenues exceeded analysts' expectations. "data-reactid =" 15 "> Amazon (AMZN) reported mixed second-quarter results on Thursday , which sent the shares lower as the profits fell below Wall Street's estimates, even when revenues exceeded analysts' surveys.

The stock traded down 2% during opening hours, changing hands around $ 1973.82.

This is what the e-commerce giant reports:

  • Revenue: $ 66 billion, hit expectations at $ 62.46 billion

  • Adjusted earnings: $ 5.22 per share, lower than consensus at $ 5.57 [19659006] 3Q Guidance: $ 66 Billion to $ 70 Billion

Amazon CFO Brian Olsavsky says one-day delivery targets will not be achieved next quarter, and the company is committed to continuing to invest in it for the next couple of quarters.

"Free one-day delivery is now available to Prime members of more than ten million items, and we're just getting started," said Amazon CEO Jeff Bezos.

Amazon will probably provide some updates on its efforts for a one-day delivery for Prime m Glow, an initiative the ecommerce giant published during its last revenue. Analysts believe the move, although costly, can subscribe to Prime membership and give it a competitive advantage. Amazon has invested $ 800 million in the last quarter to achieve the one-day delivery goal.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) –sm" type = "text" content = "The guide for the third quarter has reflected the amazing the results of the fifth annual sales event Prime Day held on July 15-16, the day was just held, these results will not appear in Amazon's earnings until the next quarter. 175 million units and grants of & nbsp; more premier members than any previous Prime Day . "Data-reactid =" 25 "> Third Quarter Guide reflects the amazing results of the fifth annual Sales Day Prime Day event. which was held July 15-16. When Prime Day was just held, results in Amazon's earnings are not shown until the next quarter. Nevertheless, Amazon considered sales of 175 million units and the addition of more Prime members than any other former Prime Day.

The highly profitable segment Amazon Cloud Services (AWS) grew by an impressive 37%, but fell slightly below expectations. On the physical store side, despite continued campaigns in Whole Foods Stores and new openings of the Amazon Go store, sales have only changed from a year ago.

Analysts hope the margin expansion of the company's major win drivers, including AWS advertising and service fees, can offset the heavy expenses of a day's delivery.

"The history of Amazon's recent quarters has continued to be supercharged growth in the more profitable business areas like cloud and advertising," said Andrew Lipsman, eMarketer chief analyst. However, the latest signs of moderate growth in these segments – at the peak of e-commerce growth, which is now only slightly smaller than the overall sector – may weaken revenues in Q2. "

Antitrust probes

Investors will also look at regulatory overhangs. The Federal Trade Commission started antitrust investigations of tech giants including Facebook, while the US Department of Justice said it was undergoing "online retailing services" but did not mention Amazon by name. Earlier this month, the European Commission also launched an antitrust investigation to see if Amazon "abuses" its role as a market provider by using proprietary data gathered from third-party sellers to compete against them.

Such surveys, which usually take a long time to detach, could potentially lead to formal costs, fines or required changes in Amazon's business model.

"We think Amazon could potentially leave certain categories, or convert vendors to 3P vendors to curb regulatory issues," Bank of America analysts Merrill Lynch said.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[19659017] Krystal Hu covers technology and China for Yahoo Finance Follow her on Twitter . "data-response time =" 33 "> Krystal Hu covers technology and China for Yahoo Finance. Follow her on Twitter .

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