Amazon yesterday announced a $113.1 billion revenue for its second quarter, but still did not meet expectations.
Wall Street and Investors were expecting around a $115 billion revenue, the E-commerce company was just $2 billion away from the target.
Amazon’s revenue increased 27% from $88.9 billion in the same quarter for 2020. The company made a profit of $7.8 billion. A second look at these numbers shows that its profit is quite small compared to its humongous Revenue.
Another factor limiting Amazon’s revenue is the reopening of stores and relaxing of restrictions globally.
Online demand for goods has reduced and as such Amazon CFO Brian Olsavsky on the earnings call said
“As the quarter progressed, people were at home less as restrictions and lockdowns eased in some of our largest geographies, including the US and much of Europe.”
“There was a drop in categories like cleaning supplies and computer monitors, which people bought more of this time last year, but don’t need in the same numbers again this year.”
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Despite the somewhat sluggish growth compared to the 40% growth rate at the peak of the pandemic. Amazon investors shouldn’t expect stellar figures for the next quarter, maybe in the closing months of the year.
Festivities should help Amazon pick up the slack, Amazon’s New CEO Andy Jassy previous business he managed “AWS” did remarkably well.
Amazon Web Services made $14.8 billion in Net sales and a net income of $3 billion.
CEO Jassy said
“At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud,”
Jassy just got recently promoted from Head of Amazon Web Services to CEO of the entire Enterprise. With a stellar record, He should be able to steer the ship in the right direction.
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