Amazon stock dips 8% in premarket trading on guidance miss, soft consumer trends
Amazon (NASDAQ:) reported second-quarter earnings that surpassed analyst expectations, but its stock fell 5% in after-hours trading due to softer-than-anticipated guidance for the third quarter.
The e-commerce and cloud computing giant posted adjusted earnings per share of $1.26 for the quarter ended June 30, 2024, beating the analyst estimate of $1.03.
Revenue came in at $148.0 billion, slightly below the consensus estimate of $148.68 billion but up 10% YoY from $134.4 billion in the same quarter last year.
Amazon’s third-quarter revenue guidance of $154-158.5 billion fell short of analyst expectations of $158.2 billion, contributing to the stock’s decline.
“We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth,” said Andy Jassy, Amazon President & CEO, highlighting the company’s cloud computing segment.
Amazon Web Services (AWS) reported sales of $26.3 billion, up 19% YoY, while the North America segment saw a 9% increase to $90.0 billion. The International segment grew 7% to $31.7 billion, or 10% excluding foreign exchange impacts.
Operating income more than doubled to $14.7 billion from $7.7 billion in the second quarter of 2023.
