Amazon Beats Analyst Expectations in Q2 Earnings Report - Stock Falls 5% in After-Hours Trading
Amazon (NASDAQ: AMZN) exceeded analyst expectations in its second-quarter earnings report, with adjusted earnings per share of $1.26 and revenue of $148.0 billion. Despite this, the stock fell 5% in after-hours trading due to softer-than-anticipated guidance for the third quarter.
The e-commerce and cloud computing giant's third-quarter revenue guidance of $154-158.5 billion fell short of analyst expectations of $158.2 billion, leading to the decline in stock price. However, Amazon President & CEO Andy Jassy highlighted the strong growth in Amazon Web Services (AWS), with sales of $26.3 billion, up 19% year-over-year.
Overall, Amazon's operating income more than doubled to $14.7 billion from the previous year, showcasing the company's continued success and growth across its various segments.
In conclusion, despite the stock's temporary decline, Amazon remains a strong and profitable investment opportunity with its robust performance and promising future prospects. Investors should consider this dip as a potential buying opportunity, as Amazon continues to dominate the e-commerce and cloud computing markets.