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Key Takeaways
- Amazon’s second-quarter net sales totaled $147.98 billion, up 10% year-over-year and below expectations of $148.67 billion.
- Amazon Web Services and advertising revenue both showed significant increases.
- The company’s projected third-quarter revenue range was mostly below analysts’ expectations.
Amazon (AMZN) shares dropped after the closing bell Thursday as the tech titan delivered third-quarter revenue guidance that disappointed investors.
The company projected current-quarter net sales between $154 billion and $158.5 billion, while analysts had called for $158.42 billion — near the top end of Amazon’s range — per Visible Alpha. The results will incorporate Amazon’s latest Prime Day sales event, which the company called its biggest ever.
Amazon’s second-quarter net sales totaled $147.98 billion, up 10% year-over-year and below expectations of $148.67 billion. Earnings per share (EPS) were $1.26, compared to 65 cents in the year-ago quarter and the analyst consensus of $1.04. Amazon Web Services revenue rose 19% year-over-year to $26.3 billion.
Advertising revenue gained 12% to $12.77 billion. Prime Video advertising will continue to be in focus for Amazon: Shows and movies on the platform began having limited advertisements this year, and the NBA earlier this month accepted Amazon’s reported bid of $1.8 billion to stream a package of games.
Amazon stock declined more than 5% in late trading Thursday after losing 1.6% during the regular session. Shares are up more than 20% in 2024.