Amazon stock

Investors largely went into Amazon's (NASDAQ:AMZN) second quarter earnings with reasonably low expectations, given weakening consumer sentiment due to ...

Given the overall positive sentiment from Amazon's second quarter results and forward guidance, we are maintaining our price target of $170 for the stock. Amazon's proven resilience against softening consumer spending is also underpinned by robust Prime Day demand observed in July, with its home-brand Amazon Devices benefiting from record-setting sales, while discretionary goods like consumer electronics made one of the best-selling categories. Amazon currently sits in third place behind GOOG/ GOOGL) and Meta Platforms( META) in the race for market share in digital ads, and is slated to expand beyond its current 10% share in related opportunities over coming years, as it continues to attract advertisers with rising traffic on its core commerce site. What We Liked: AWS' continuation of growth in the 30% range and a sustained multi-year CAGR of more than 20% provides confidence that the second quarter margin miss is only a temporary showing. Cloud spending has remained resilient despite the looming economic downturn, as the modernization of technology stacks continues to be viewed as a critical enabler of operational and economic efficiency. Paired with Amazon's limited discount risks as discussed in earlier sections, the company demonstrates solid resilience despite significant exposure to the weakening consumer end market. Although the unfavorable incremental costs indicate that the internal impact of inefficient productivity related to overstaffing and excess capacity built from the booming pandemic era remains a lingering overhang on Amazon's margins, the deceleration observed in the second quarter underscores improvement in managing controllable costs outside of unfavorable external impacts (e.g. inflation, FX, etc.). In the second quarter, it is likely that underutilized capacity remains a core driver of the $4 billion in incremental costs. Margins are also expected to remain soft in the third quarter, with management only guiding a range of $0 to $3.5 billion, a far cry from the average consensus estimate of $4.4 billion. Recall that in the first quarter, incremental costs totaled $6 billion, with only $2 billion attributable to unfavorable external economic conditions, and while underutilized capacity accounted for $4 billion. Unlike the previous quarter, we believe Amazon's second quarter results and forward guidance have demonstrated that there is more to like than dislike about its growth outlook. Consolidated earnings per share came in at -$0.2, missing Wall Street consensus of $0.12 by a far cry again due to the ongoing risk-off environment in public markets.

Though it reported a loss in e-commerce, profits in its cloud business jumped 36%. The company expects revenue growth to accelerate in the third quarter, and ...

CFO Brian Olsavsky said on the earnings call that the company expected to grow into its excess capacity in the second half of the year, which will improve profitability. In addition to the upside in e-commerce, Amazon's third-quarter guidance indicates that revenue growth is already reaccelerating. After a successful Prime Day earlier this month and with the holiday quarter to look forward to, Amazon's stiffest headwinds in e-commerce are likely behind it. That tailwind, combined with strong growth in AWS, means that the stock has probably bottomed out from the sell-off. On the bottom line, it sees operating income of $0 to $3.5 billion in the third quarter, below the $4.9 in operating income it made in Q3 2021. The good news for investors is that the current headwinds in the e-commerce business should eventually end. Revenue increased 7%, or 10% in constant currency, to $121.2 billion, ahead of the Wall Street consensus at $119.1 billion and the company's own guidance of $116 billion to $121 billion. In North American e-commerce, which includes the company's highly profitable advertising business, net sales increased 10% to $74.4 billion. Amazon lost $1.8 billion outside North America, down from a $362 million profit in Q2 2021. In a tough environment, Amazon beat both analyst expectations and its own guidance, driving the stock up 13% after hours on Thursday. Operating income of $3.3 billion was down from $7.7 billion in the quarter a year ago, as shopping habits have shifted away from e-commerce. The pandemic tailwinds it once enjoyed have faded, and the broader tech sell-off has weighed on it.

Analysts reacted positively to the report, seeing Amazon as a standout amongst its peers, especially other retailers.

The firm maintained its buy rating and raised its price target to $170 from $168. — CNBC's Michael Bloom contributed to this report. The firm boosted its price target to $200 from $195 and kept its overweight rating. The firm raised its price target to $185 from $175 and maintained its overweight rating. The firm reiterated its overweight rating and move its price target to $175 from $170. The firm noted that management is effectively navigating the cost environment, and that it sees services and AWS growing going forward. The firm has a buy rating and $175 price target the stock. Here's what other analysts had to say: Deutsche Bank The firm raised its price target to $175 from $155 on the report and kept its buy rating on shares.

Amazon (AMZN) delivered mixed results for the second quarter, which ended on June 30, 2022. The e-commerce giant posted revenue that beat consensus ...

Operating income is expected to be between $0 and $3.5 billion, compared to $4.9 billion in the year-ago quarter. The cost of sales increased to $66.42 billion from $64.18 billion in the year-ago quarter. Amazon expects Q3 2022 net sales to be between $125 billion and $130 billion, representing 13% to 17% growth compared to the year-ago quarter. Cash, cash equivalents, and restricted cash increased to $36.6 billion from $34.16 billion in the year-ago period. Net revenue in the quarter increased 7% to $121.2 billion compared to the year-ago quarter. Amazon Web Services’ revenue increased to $19.74 billion from $14.81 billion in the year-ago quarter.

As revenue grew 7% in Q2 2022, Amazon expects more revenue in the third quarter between $125 billion and $130 billion.

Specifically, Amazon Devices saw its record-breaking Prime Day in the history of the Prime Day event. The last Amazon Prime Day event in July 2022 was the biggest one in the company’s history. The company dismissed 99,000 people in the quarter after almost doubling its workforce during the coronavirus pandemic. As revenue grew 7% in Q2 2022, Amazon expects more revenue in Q3. The company is expecting revenue growth between $125 billion and $130 billion, about a 13% to 17% surge. “Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network. Profits from Amazon Web Services were reported at $19.7 billion, higher than the $19.56 billion.

Why won't Amazon's board unlock the caged value of AWS and Advertising to make investors better off?

By contrast, with the exception of its relatively small physical stores unit (+10% in the quarter), Products is shrinking, losing money, and fraught with labor and logistical challenges that are likely to defy solutions over the long run. More importantly, AWS has no doubt benefited tremendously by developing new services to help Amazon operate its ecommerce business. More specifically, I would encourage the company to create two new ones: Meanwhile, Amazon’s products businesses put in a more mixed performance. - AWS enjoyed 33% growth to $19.7 billion which exceeded the consensus by $140 million. Amazon’s second quarter revenue of $121.23 billion exceeded the consensus estimate by $2.1 billion.

Shares of Amazon.com Inc. undefined shot up 11.8% in morning trading Friday, in the wake of second-quarter results, to put them on for the best one-month...

The stock has run up 28.8% in July, to snap a three-month losing streak in which it tumbled 34.8%, amid growing concerns over the effect Shares of Amazon.com Inc.

Shares of Amazon.com were up 11% in Friday morning trading, riding the momentum driven by a second-quarter earnings release yesterday that led to [an ...

Amazon delivered sales that easily outpaced expectations. Cloud computing and digital advertising ruled the day. Amazon's bullish forecast gave investors reason ...

That said, Amazon proved the resilience of its business resulting from its optionality and the continuing strength of its cloud business. The company is also guiding for operating income that ranges from flat to $3.5 billion. For the third quarter, Amazon is guiding for net sales in a range of $125 billion to $130 billion, which would represent year-over-year growth of between 13% and 17%, easily outpacing its current results. The bottom-line results included a loss of $3.9 billion resulting from the declining value of its equity stake in Rivian ( RIVN 1.34%) -- a number that will change each quarter along with the electric vehicle (EV) maker's stock price. It was Amazon Web Services (AWS) that carried the day, however, as revenue from its cloud computing business jumped 33%. Amazon's digital advertising business continued to grow, up 18%. Absent the headwinds created by a strong dollar, revenue would have grown 10%. This resulted in a loss of $2 billion and a loss per share of $0.20, compared to earnings per share (EPS) of $0.76 in the prior-year quarter -- but this also requires context.