alexa certify
0

Amazon’s great Q2 revenue is likely to start decreasing

Amazon released its second-quarter results after the market closed on Thursday. Earnings per share were $15.12, higher than the average estimate of $12.22 by Wall Street analysts.

Revenue was 113.08 billion U.S. dollars, lower than the expected 115.07 billion U.S. dollars.

However, Amazon shares fell in after-hours trading on Thursday. Currently, Amazon’s transaction price is $3,425, a drop of 4.85%.

Looking ahead to this quarter, Amazon said that it expects operating income to be between US$3.5 billion and US$6 billion. The revenue is expected to be in the range of US$106 billion and US$112 billion.

 

Amazon sales future forecast

However, this positive revenue might not remain longer for Amazon. On Thursday, the company announced that sales growth would slow in the next few quarters as customers move more out of their homes.

Customers with Prime membership are Amazon’s most valuable customers. However, the company has also seen a slowdown in this section spending growth. The stock price fell 7% in after-hours trading.

 

Covid-19 turned out to have an incredible outcome for the company

Since entering the COVID-19 pandemic for more than a year, Amazon’s financial brilliance is fading slightly. When the physical store closed, Amazon announced record profits, attracted more than 200 million Prime loyal users, and recruited more than 500,000 employees to keep up with growing demand.

Now, Amazon is struggling to reach its peak again. Its profit increased by 44% in the first quarter of this year. However, it fell to 27% on June 30. Q3 sales might grow slightly, only by 16%.

This is attributed to a difficult comparison with last year. In 2020, consumers stayed indoors and relied on e-commerce to meet their daily needs.

People started travelling or doing things other than online shopping, which will significantly impact Amazon’s revenue growth.

In Q2, Amazon’s profit increased by 48% to 7.8 billion U.S. dollars, becoming the second-largest profit ever announced by Amazon.

Olsavsky also added that this low growth rate is expected to continue in the next several quarters.

  • Support
  • Platform
  • Spread
  • Trading Instrument
User Review
  • Support
    Sending
  • Platform
    Sending
  • Spread
    Sending
  • Trading Instrument
    Sending

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.



You might also like

Leave a Reply

Financebrokerage