According to reports, on August 4th, Amazon released its financial report for the second quarter of 2023. Amazon’s performance this time can be described as “amazing”. Not only have almost all key indicators and business performance greatly exceeded market expectations, but the guidance for the next quarter is also quite domineering, indicating that revenue will continue to maintain double-digit growth.
The financial report shows that Amazon’s net revenue in the second quarter increased by 11% year-on-year to 134.38 billion US dollars, far higher than the market expectation of 131.63 billion US dollars; The operating profit was $7.68 billion, almost double the market expectation of $4.72 billion, which was the biggest profit growth of Amazon since its report in the fourth quarter of 2020. The operating profit rate in the quarter reached 5.7%, much higher than the average market expectation of 3.46%. Earnings per share are 65 cents, with an expected 35 cents
Judging from the key financial indicators, Amazon can’t just use the word “good” to describe it this time. It can be said that it has given the market a big surprise.
Since the fourth quarter of 2020, Amazon has recorded the highest profit in a single season. This shows that a series of measures taken by Andy Jassy, CEO of the company, to cut costs have achieved results. Earlier, Amazon launched the largest layoffs in history and frozen recruitment, and has cut 27,000 jobs since last fall.
Amazon expects revenue in the third quarter of this year to be between $138 billion and $143 billion, an increase of between 9% and 13%.
Driven by the artificial intelligence boom, Amazon also launched its own artificial intelligence products against Microsoft and Google and vigorously promoted them. Although AI did not significantly promote Amazon’s performance this time, Amazon made it clear that the competition of generative AI has just begun, and Amazon is already making relevant preparations and will continue to exert its strength.
At the new york Summit of Amazon Cloud Technology last week, Amazon just updated a series of generative AI service functions and tools. Some analysts believe that in the next few quarters, Amazon may need to show its competitiveness in the AI wave to the outside world, in order to truly continue to support the continuous growth of performance and stock price.
Driven by performance and expectations, Amazon’s share price soared after hours, and the increase once exceeded 10%.
Post time: Aug-07-2023