From Nasdaq.: 2024-08-02 13:11:00

Amazon.com (AMZN) reported a strong second-quarter with earnings of $1.26 per share, a 93.8% increase from last year. Net income reached $13.5 billion, including a gain of $0.4 billion from its investment in Rivian Automotive. Despite a $1 billion impact from exchange rates, net sales of $147.98 billion grew by 10%.

The company experienced growth in product sales, service sales, and AWS segment revenues. While North America and International segments saw positive momentum, AWS revenues rose 19% to $26.3 billion. Third-party seller services generated $36.2 billion, and advertising services sales reached $12.8 billion. Subscription services sales increased by 10% to $10.9 billion.

Operating income for AWS was $9.3 billion, up 74% year-over-year. The company reported an overall operating income of $14.7 billion. Cash and cash equivalents were $71.2 billion at the end of June 2024. Amazon generated $25.3 billion in cash from operations in the second quarter, projecting net sales between $154 billion and $158.5 billion for the third quarter.

Amazon’s strong global presence, Prime momentum, and efforts to gain traction among small businesses are expected to drive its financial performance in the future. Management anticipates an unfavorable foreign exchange impact in the next quarter, with operating income expected between $11.5 billion and $15 billion. Reflecting on a year-to-date performance, AMZN has gained 13%.

The company’s investments in generative AI for AWS and focus on expanding Large Language Model offerings are likely to boost its growth among cloud customers. Advertising business growth, strong relationships with third-party sellers, and strengthening Prime offerings are key drivers for Amazon. With a Zacks Rank #2 (Buy), Amazon remains a top pick in the retail-wholesale sector.



Read more at Nasdaq.: Amazon (AMZN) Q2 Earnings Beat Estimates, Sales Rise Y/Y