AMZN) on Thursday announced second-quarter earnings that rejected Wall Street estimates boosted by consumer trends during the coronavirus pandemic, which made the technology giant one of the biggest beneficiaries of the crisis. Amazon (AMZN) Second-quarter earnings were released on Thursday, rejecting Wall Street forecasts reinforced by consumer trends during the coronavirus pandemic, which made the technology giant one of the biggest beneficiaries of the crisis.
The company’s results are even more impressive, given that it admitted to spending more than $ 4 billion over the quarter to cover costs related to COVID-19. Here are the results compared to Bloomberg’s consensus estimates:
The quarterly results were boosted by cash flow, up 42% to $ 51.2 billion in the twelve months, compared to $ 36.0 billion in the comparable period a year ago. Net sales rose 40% from $ 63.4 billion a year ago, and Amazon Web Service (AWS), the company’s huge cloud operation, grew 29%.
Patrick Moorhead, president and chief analyst at Moor Insights and Strategy, noted that AWS growth during the quarter was “higher than total annual revenue for many cloud games. AWS is making a successful move into the $ 40B annual revenue company. As a result, AWS is higher than Salesorce.com and SAP. “
Amazon, meanwhile, also said it had invested more than $ 9 billion in capital projects, and seeing its grocery delivery capacity increase by more than 160% during the quarter tripled: online grocery sales tripled .
“We have created more than 175,000 new jobs since March and we are currently looking to recruit 125,000 of these workers to their full-time, full-time positions,” CEO Jeff Bezos said in a statement.
“Third-party sales grew faster this quarter than Amazon’s first-party sales. Finally, even at that unpredictable time, we put a lot of money into the economy this quarter, investing more than $ 9 billion in capital projects, including execution, transportation and AWS, ”he added.
collected more than 63 percent., significantly outperforms the S&P 500 index. “data-reatid =” 31 “> Shares – which rose more than 6% after trading hours – fell as the coronavirus pandemic caused widespread closure and home users accessing the site to meet their needs. Amazon has soared more than 63 %, significantly outperforming the S&P 500 index.
FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and the alphabet Google (GOOG). “data-reatid =” 32 “> Amazon has cut several records in a row – along with other high-flying FAANG technology stocks, including Facebook (FB), Amazon (AMZN), Apple (AAPL) )., Netflix (NFLX) and the alphabet Google (GOOG).
According to the company’s third-quarter guidelines, net sales for the next quarter are expected to range from $ 87 billion to $ 93 billion, up 24% from 33% in the comparable period of 2019. During the period. Coronavir-related costs are expected to rise to $ 2 billion. In the third quarter, Amazon said operating revenue, which is expected to fall from $ 2-5 billion.
Daniel Salmon, an analyst at BMO Capital Markets, who ranked Amazon No. 4 ranked among the largest stocks in the mega cap cap, said this week that the stock’s “long-term opportunity is stronger than ever before, and we also continue to see outperforms over the next 12 months. “
However, he added that the bank was “cautious” given the recent wave of growth and Amazon’s ability to increase investment.
on Wednesday afternoon testifying against Congress. The billionaire, who is typically able to control the story of technology and retail, found himself in a defensive defense after being asked if Amazon uses data from third-party vendors. “Data-reatid =” 37 “> Q2 report emerges. Amazon uses data from third-party vendors.
Asked if customer information is being used to benefit Amazon, Bezos said the company is limiting it, but added, “I can’t guarantee the policy wasn’t violated,” a response that caught the eye of market participants.
@TeflonGeek“data-reatid =” 39 “>Javier David is the editor of Yahoo Finance. Follow him on Twitter: @TeflonGeek
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