Amazon com, Inc. Amazon.com Announces Second Quarter Results

For AWS, these quarter-over-quarter increases are primarily driven by higher infrastructure investments to support continued strong customer growth, including larger depreciation on a growing fixed asset base. We also expect increased energy costs as we continue to see volatility in utility prices around the world in operating our AWS data centers. Our guidance incorporates the order trends that we’ve seen to date and what we believe today to be appropriate assumptions.

• Our third-quarter operating income guidance range is $0 to $3.5 billion.
• On the second point, we expect fixed cost leverage to improve in the second half of the year as we continue to grow into our capacity.
• We also are adding — continuing to add people in that space, product engineers, sales people, customer support.
• During the quarter, we saw improvement in many of our key operational metrics, including in-stock levels and delivery speed, and saw a subsequent step-up in consumer demand.
• For the twelve months ended June 30, 2021 and 2022, this amount relates to equipment included in “Property and equipment acquired under finance leases, net of remeasurements and modifications” of $9,976 million and $3,579 million.

That will be opening up and effective in 2023 and beyond. So there’s always a pre-spend to keep the — again, the pipeline moving. So when we make adjustments to the time horizon, the impact is not as great as you might expect in the year 2022.

Amazon stock soars nearly 12% after revenue beats expectations

The Seattle-based company employed almost 1.47 million people as of March 31, a decrease of 10% from the period a year earlier and down from more than 1.54 million workers three months earlier. The top line beat market estimates sending the stock soaring over 12% in after-market hours on Thursday. Boutique investment research shop providing professional coverage on disruptive thematic equities. Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments. This article is a transcript of this conference call produced for The Motley Fool.

And as Brian talked about, hiring and a number of areas of the business, including engineers, other tech workers and there’s some component of the wage inflation as we look to continue to hire and retain employees there. In terms of the — coming in at the five — a little over $5 billion for stock-based comp, the main driver there was primarily driven by fewer employees stock awards vest — could be fewer employee stock awards we’re vesting in Q2 than we expected. We expect infrastructure to represent a bit more than half of our total capital investments in 2022. For the worldwide stores business, we’ve continued to moderate our build expectations to better align with customer demand. We expect the fulfillment and transportation dollars spent on capital projects to be lower in 2022 versus the prior year. Another 30% of the $60 billion was fulfillment capacity and a little less than 25% was for transportation.

Amazon Posts Net Loss for the Second Straight Quarter as It Manages Slower Demand

Apple beat Wall Street’s estimates but wasn’t immune from the downturn, either, with iPhone sales coming in lower than expected. And, Jason, on your second question related to the international and the profitability there reported. There’s a foreign exchange exposure there on that segment with the operating income, that’s included in there about $231 million of unfavorable impact to that segment https://forexarticles.net/author/andreyma/ included in that $1.7 billion loss for the quarter. Just looking — broadly speaking of what’s going on with that business and the losses that we’re seeing there and the investments. I think it’s important to remember, it’s early in many of our international countries, particularly in some of our emerging or more recent launch countries, places like India, Brazil, the Middle East.

And when it’s part of FBA, it can also help as being more Prime eligible and available to ship in one, two days or whatever the Prime offer happens to be. So we’re happy with the selection that we’ve added from third-party sellers. And I think that shows in the percentage mix that you see. So I’d challenge the premise a little bit there about incenting mix or I believe is how I interpret your question. We are relatively indifferent as to whether some customer buys a third-party or first-party product from us.

Services to share this page.

Overall, company still has plenty to be optimistic about across its operations. Get this delivered to your inbox, and more info about our products and services. Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.

As a reminder, our revenue growth accelerated to over 40% growth from the period between May 2020 and May 2021. While demand has remained strong, the lapping of this high-growth period depressed our revenue growth rate for the following 12 months, ending in May of this year. Tech broadly speaking is faring poorly in the current macroeconomic environment. Microsoft reported its slowest revenue growth in five years this week, while Meta shares dropped precipitously on losses from its investments in augmented and virtual reality technologies.

Results also hurt by investment in electric-vehicle maker Rivian, but cloud-computing growth remains strong

The remaining 5% was comprised of things like corporate space and physical stores. For full year 2022, we do expect to spend slightly more on capital investments than last year, but the proportion of capital spending shifts among our businesses. We expect technology infrastructure spend to grow year over year, primarily to support the rapid growth and innovation we’re seeing with AWS. In our emerging locations, there’s a healthy amount of investment we’ve done to drive expansion, and we expect to continue to do that given the strong competition across many of these markets. 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. Specifically, the results included a $3.9 billion negative impact related to non-operating, mark-to-market losses on its Rivian investment during the second quarter (vs. -$7.6 billion in Q1).

Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. On the headcount, yes, I think it was more, as we mentioned last quarter, last year in — or excuse me, in Q1, we added — to give you a flavor for it, we added 14,000 workers in Q1. Prior year, we had reduced our net headcount by 27,000.

AMZN Earnings Date and Information

Operating income decreased 57% to $3.3 billion this year, compared with $7.7 billion in Q2 2021. Includes sales related to various other offerings, such as certain licensing and distribution of video content and shipping services, and our co-branded credit card agreements. For the twelve months ended June 30, 2021 and 2022, this amount relates to property included in “Principal repayments of finance leases” of $11,435 million and $9,789 million. Percentage changes may not align exactly with dollar figures due to rounding. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

On the bridge to Q2 to Q3, so again, you have the — mentioned three items, ops improvement that we see of $1.5 billion and offsetting that is increased costs in AWS as we build out depreciation. We also are adding — continuing to add people in that space, product engineers, sales people, customer support. Speaking more broadly, we know AWS is a huge opportunity. Additionally, note that all of our share and per share information included in our financial materials has been retroactively adjusted to reflect the 20-for-1 stock split, which was effective on May 27. We also provided our third-quarter financial guidance as part of our earnings release.

More Earnings Resources from MarketBeat

Again, it’s got to be a positive both for the customer and for the brand. I think our advantage is that we have highly efficient advertising. And so I think continuing to focus on building out, building out to customers, working on that pipeline, and building longer commitments, finding customers that are making longer commitments is really important to that.