AMZN after hours
Amazon shares are down 7.9% after earnings.
Amazon (AMZN) reported its Q2 2023 earnings after the bell on Thursday and they're a mixed bag:
- EPS: $1.26 vs $1.04 expected
- Revenue: $147.98B vs $148.78B expected
- AWS net sales: $26.28B vs $25.98B expected
Key takeaways:
- Strong bottom line performance with EPS beating estimates by $0.22
- Revenue slightly missed expectations, coming in $800M below forecast
- AWS continues to show robust growth, up 19% YoY to $26.3B
Amazon highlighted "continuing progress on continued reacceleration in AWS growth" and improvements "on a number of dimensions." The e-commerce giant's cloud division outperformed expectations, suggesting potential market share gains in the competitive cloud space.
Q3 outlook:
- Net sales: $154B - $158.5B
- Operating income: $11.5B - $15B
Why the selloff?
- Revenue miss: Even though slight, any miss can spook investors in the current market.
- Potential growth concerns: The market may be pricing in slower growth expectations.
- High expectations: AMZN shares have had a strong run in 2023, setting a high bar for earnings.
- Profit-taking: Some investors might be using the mixed results as an opportunity to lock in gains.
On a second look, the solid earnings beat and positive AWS performance could provide support for AMZN shares in after-hours trading, despite the revenue miss.
Watch for analyst reactions and any comments on AI initiatives, which could be key drivers for future growth.