Amazon’s second-quarter results for 2024 were a mix of hits and misses, with sales falling slightly short of Wall Street estimates but profits exceeding expectations. The tech giant reported a 10% increase in revenue, reaching $147.98 billion, but this was lower than the expected $148.56 billion. However, profits were $13.5 billion, or $1.26 per share, almost double the profits from the same quarter the previous year and surpassing expectations of $1.03 per share.
Amazon Web Services revenue saw a significant increase of 18.7% to $26.3 billion, with operating profits of $9.4 billion. Sales from the online stores segment, the company’s largest business segment, rose by 5% to $55.4 billion. Revenue from third-party seller services also saw growth, increasing by 12% to $36.2 billion. The most substantial percentage growth was seen in advertising services, which saw a 20% increase to $12.8 billion.
Looking ahead to the current quarter, Amazon provided guidance that it expects net sales to fall between $154 billion and $158.5 billion, with a midpoint of $156.25 billion. This falls slightly below the average estimate of $158.24 billion, and as a result, shares fell by 4% in initial after-hours trading. The company stated that there is more to come in this developing story, indicating that there may be further updates or developments in the near future.
Overall, Amazon’s second-quarter results were a mixed bag, with sales not meeting expectations but profits exceeding them. The company continues to see growth in key business segments such as Amazon Web Services, online stores, third-party seller services, and advertising services. While the slight miss in sales for the quarter led to a drop in share prices, investors will be keeping a close eye on how Amazon navigates the remainder of the year and whether they can continue their growth trajectory in the face of evolving market dynamics. With more to come in this developing story, it will be interesting to see how Amazon adapts and responds to changing circumstances in the coming months.
