Amazon’s net income rose 50 percent year over year. Still, investors are disappointed. You expected better quarterly figures from the online retailer.
The world’s largest online retailer, Amazon, continued to benefit from the trend towards online shopping and booming cloud services in the second quarter.
In the three months to the end of June, net profit rose 50 percent year-on-year to $ 7.8 billion, as Amazon announced after the US market closed. Revenues grew 27 percent to $ 113.1 billion. Amazon cracked the $ 100 billion mark for the third quarter in a row. However, investors reacted disappointed and initially let the share fall by four percent after the hours of trading.
In view of the already high US consumer spending and the “Prime Day” discount battle, which this time was dragged forward into the second quarter, analysts’ expectations were high. The business forecast for the current quarter also caused disappointment on the market. Amazon announced sales of up to 112 billion dollars, which corresponds to a significant slowdown in growth to a maximum of 16 percent – modest by Amazon’s standards. On Wall Street, a higher sales forecast and overall better quarterly figures were expected.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
