Amazon (AMZN) shares are in focus to start the week after plunging Friday as quarterly results from the e-commerce and cloud provider failed to impress investors.
Amazon's latest earnings obliterated my previous concerns, mainly related to the impact of tariffs on its retail business. North America and International retail segments are growing by double digits and expanding margins, despite the pressure from tariffs and the end of deminimis in China and Hong Kong. AWS is squeezing margins, with dilution coming from heavy CapEx flowing into OpEx due to an earlier shift this year from a 6 to a 5-year depreciation schedule.
Amazon stock fell 8.3% following a mixed second quarter report, according to CNBC.
Amazon (AMZN -8.09%) is best known for its sprawling e-commerce empire, dominant cloud infrastructure business, and its ever-growing Prime membership base. But quietly sitting inside this flywheel is a business with surprising strategic upside: Prime Video.
Online shoppers came out in full force to power 11% growth in Amazon online store sales, its largest reporting segment, and its second-largest, third-party seller services, advanced 11% in the second quarter ended June 30, all before the big Amazon Prime Day four-day sales event.
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Key Points in This Article: Amazon (AMZN) got knocked back on Friday after reporting AWS revenue growth that failed to wow the market.
Major U.S. equities indexes tumbled on the final day of the trading week and the first day of the new month after the latest Bureau of Labor Statistics report showed a lower-than-expected pace of hiring in July.
AMZN's Q2 results benefit from a solid momentum in North America and International segments alongside steady growth in AWS. The stock drops on mixed Q3 guidance.
Not all in the the Magnificent 7 is magnificent today.
AMZN beats on Q2 earnings and revenues, but weak Q3 guidance sparks an 8% drop in shares, putting key ETFs like FDIS, ONLN, VCR and XLY in the spotlight.
Amazon.com, Inc.'s 8% post-earnings dip is an overreaction; AWS remains highly profitable with $10B in quarterly operating profits and 33% margins. Despite slower AWS growth versus Microsoft and Google, Amazon leads the cloud market with a 30% share and robust enterprise client expansion. The U.S. cloud market is poised for long-term growth, and AWS's ability to scale profits is undervalued by the market.