Amazon Surpasses Expectations with Strong Second-Quarter Results and Soaring Market Value
After the U.S. stock market closed on Thursday, August 3, Amazon announced its second-quarter results, stunning investors and analysts alike with its impressive performance. The e-commerce giant reported a revenue increase of 11% year-on-year, reaching US$134.38 billion. This figure surpassed market expectations of US$131.63 billion, excluding a $300 million loss due to exchange rates.
Following the release of the financial report, Amazon’s after-hours stock price skyrocketed by more than 10%, leading to a remarkable increase in its market value, which surged by over $100 billion.
Breaking down the revenue by region, North American business revenue for Amazon grew by 11% year-on-year to US$82.55 billion, surpassing market expectations of US$79.68 billion. Additionally, international business revenue climbed by 10% year-on-year to US$29.7 billion. Amazon Web Services (AWS) also experienced significant growth, with a 12% year-on-year increase in revenue to $221.4 billion, surpassing market projections of $21.71 billion.
When addressing the company’s second-quarter performance and future guidance, Amazon CEO Andy Jassy expressed confidence in their strategy. He emphasized their commitment to reducing the service cost of fulfillment, while still providing the fastest delivery speed for Prime customers. Jassy also highlighted the steady progress of AWS, mentioning that it continues to solidify its position as a leader in cloud services with the introduction of generative AI releases.
Furthermore, Jassy noted that AWS growth has reached a plateau as customers transition from focusing on cost optimization to implementing new workload deployments.
Amazon’s exceptional second-quarter results caught the attention of investors, causing its market value to surge by more than $100 billion overnight. This unexpected achievement has further solidified Amazon’s position as a dominant player in the e-commerce and cloud services sectors.
For more details on Amazon’s outstanding second-quarter results and its market value surge, watch the video provided.