NEWS

Amazon surpasses profit expectations for Q2

Published on: 7th August 2023

Amazon has surpassed last year’s Q2 profits despite the current economic climate affecting consumer spending.

Amazon

Thanks to Prime deals and fast delivery options, shoppers have been leaning heavier on Amazon shopping. The company says its two-day Prime event in July was a success.

Sales this quarter grew 11% to $134.4b from last year’s numbers, and exceeded analyst predictions of $131.4b revenue.

In April, the tech giant reported that its first quarter earnings were higher than anticipated due to income from cloud computing and advertising units through Amazon Web Services (AWS).

It then embarked on an aggressive cost-cutting exercise, including laying-off 27,000 workers and cancelling warehouse expansion plans, to aid Q2 results.

This quarter’s stock surged nearly +10% in after-hours trading and Amazon’s stock has risen +52% year to date, making it one of a few stocks which has helped power the tech market this year.

The AWS division reported $22b in sales, beating most analysts’ forecasts, but growth revenue has slowed to 16% compared to 29% last year.

Andy Jassy, who took over as chief executive two years ago, has said the company is still making big investments, including in artificial intelligence and has a top interest on Wall Street.

 

 

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