Robust performance by Amazon, both in retail and cloud
Amazon expects third-quarter revenue to be between $174 billion and $179.5 billion, surpassing the average analyst expectation of $173.1 billion. This is due to robust performances from both its retail segment and Amazon Web Services (AWS), the company’s cloud division.
Amazon posted a 13% increase in revenue last quarter, reaching $167.7 billion.
Amazon reported an operating profit of $19.2 billion and a net profit of $18.2 billion, a significant increase compared to $13.5 billion in the same quarter a year earlier. Earnings per share came in at $1.68, compared to $1.26 in the second quarter of 2024. This means the company easily exceeded investors’ expectations.
AWS played a prominent role in Amazon’s profit contribution, accounting for around 60% of the company’s operating profit. The cloud computing division AWS saw its revenue rise by 17.5% year-on-year to $30.9 billion. However, analysts warn that AWS is lagging behind competitors in the field of AI development.
As a retailer, Amazon has managed to continue attracting consumers, partly thanks to record sales during Prime Day, although the full impact of this is expected to become visible only in the third quarter. The higher US import tariffs from China (up to 10% in June) do not seem to have significantly affected Amazon yet.
Analysts are generally positive about Amazon’s prospects in e-commerce, cloud, and AI, despite concerns about macroeconomic uncertainties and trade barriers. For example, UBS recently raised its price target to $271, while Jefferies and Bank of America both recently set price targets of $265 with a recommendation to buy.
Emerce
Subscribers 0
Fans 0
Followers 0
Followers