Amazon stock dropped 13% after missing earnings expectations, but long-term prospects remain positive

From Nasdaq: 2024-08-08 09:05:00

Amazon (NASDAQ: AMZN) stock plummeted nearly 13% after second-quarter earnings missed market expectations, pushing year-to-date gains to just 7%. Revenue rose 10%, with Amazon Web Services up 19%. Management’s third-quarter guidance of 8-11% growth disappointed, but historical trends suggest Amazon may still beat expectations. Operating income is projected to grow to $15.0 billion. In a year, Amazon could surpass Walmart as the world’s largest company by sales, with AI investments and e-commerce efficiency driving growth. Advertising and streaming services are also booming, making Amazon a solid long-term investment.



Read more at Nasdaq: Where Will Amazon Be in 1 Year?