Topline
Amazon’s stock dropped as much as 5% after the company issued its second-quarter earnings Thursday, revealing net sales did not meet analyst expectations alongside a conservative revenue forecast.
Amazon’s stock closed down more than 1% Thursday. (Photo by SEBASTIEN BOZON / AFP) (Photo by … [+]
Key Facts
Amazon reported $147.98 billion in revenue, performing under analysts’ expectations of $148.7 billion—though the company managed to beat earnings per share expectations by 23 cents ($1.26 per share).
Amazon shares closed down more than 1.5% at $184.07 before dropping more than 5% in extended trading.
The e-commerce giant said net sales are expected to generate between $154 billion and $158.5 billion in the third quarter, citing the anticipation of an “unfavorable impact of approximately 90 basis points from foreign exchange rates.”
Net income jumped to $13.5 billion in the second quarter, a little more than double what the company reported in the second quarter of 2023.
Amazon Web Services posted $26.28 billion in revenue, beating analyst expectations of $26 billion and improving 19% on the same period last year.
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Forbes Valuation
We estimate Bezos’ net worth at $202.1 billion, making him the second-wealthiest person in the world behind Tesla chief Elon Musk.
Key Background
Amazon’s stock started the year at $149.93 per share and is now up more than 20% since January. The company reached a $2 trillion market capitalization for the first time ever last month thanks to a large tech rally fueled by an artificial intelligence boom. Amazon also notched its most profitable first quarter ever this year, with net income reaching $10.4 billion compared to a $3.8 billion loss in the same period the year before.
Further Reading
Amazon Is A $2 Trillion Company For First Time Ever (Forbes)
Amazon Stock Jumps Closer To Record High On Earnings Boost (Forbes)
Elon Musk’s Twitter takeover, the Reddit blackout protest and debunked viral rumors. Prior to joining Forbes, Antonio was a reporter with the San Fernando Valley Business Journal and Los Angeles Business Journal covering the local finance and biotech sectors. He graduated from California State University San Marcos in 2020 and completed a master’s degree in journalism at the University of Southern California the following year. Follow Pequeño for continued coverage on Elon Musk, X and ongoing developments at various social media companies. Tips: apequeno@forbes.com.
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