Income: $ 63.4 billion, defeating the expectations for $ 62.46 billion
Corrected earnings: $ 5.22 per share lower than consensus estimate of $ 5.57
Guide for third quarter revenues: $ 66 billion to $ 70 billion, 4% above consensus at the highest levels
under high-end consensus
<p class = "canvas-atom canvas-text Mb (1.0e) Mb (0) One day delivery is stly One-day delivery is expensive
Amazon's Financial Director Brian Olsawski says the company has spent more than $ 800 million previously predicted for the construction of one-day delivery Prime
He added that the goal will not be achieved in the next few months, but Amazon is determined to continue investing in it over the next few quarters.
"Millions of more day-to-day packages came out this quarter compared to the last quarter," he told reporters on Thursday. The company claims that the free one-day delivery is available to Prime members for more than ten million items.
Amazon first announced the initiative at its latest revenue. Olsavsky said customers have already increased their purchases due to the initiative. Sales of online stores grew by 16%, the fastest in the last two years. Analysts believe that this move, albeit expensive, could lift primitive subscription memberships and offer a competitive advantage.
is an example of short-term pain for long-term profit, "said Moody's Amazon analyst Charlie O'Calla.
Fast delivery is a necessary strategy to compete with customers' advantage of the speed of brick and mortar, "he added.
Mb (1.0) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Third-quarter retailer's management star results of its fifth annual Prime Day business event which took place July 15-16, which will not appear in Amazon's profit until the next quarter, Amazon advertises the sale of 175 million units and Adding a & nbsp; more Primary than any other previous Merchant Day Data-reactid = "41"> Third-Trimmer Third- of its fifth annual Prime Day sales event, which ran from July 15 to July 16. These results will not be reflected in Amazon's earnings until the next quarter, but Amazon advertises the sale of 175 million units and adding more primary members , compared to any other previous day
The Amazon Cloud Services (AWS) high-yield segment grew by an impressive 37%, but it dropped slightly less than expected. On the physical side of the store, despite the continued promotions in Whole Foods stores and the new Amazon Go stores, sales have changed only a year ago.
Analysts hope the margin will broaden the main profits of the company's profits, including AWS advertising.
"The history of Amazon's last few quarters continues to grow in more profitable business lines such as cloud and advertising," said Andrew Lipsman, chief eMarketer analyst. "However, the recent signs of a slowdown in growth rates in these segments – in addition to the growth of e-commerce, which now only slightly outperforms the whole sector – may affect revenue for the second quarter."
Investors will also observe a regulatory overhang. The Federal Trade Commission launched technology giants for antitrust investigations, including Facebook, while the US Department of Justice announced it was reviewing "online retail services" but did not mention Amazon's name
Earlier this month, the European Commission launched antitrust politics. investigating whether Amazon "abuses" its role as a market provider by using its own data aggregated by third country vendors to compete with them.
Such investigations, which usually take a long time to disperse, could lead to formal accusations, fines or necessary changes to Amazon's business model. Olsavsky declined to comment on regulatory issues, saying the next quarter's management did not include any sanctions or impact of regulations. Analysts at Bank of America Merrill Lynch write.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) 19659026] Krystal Hu covers technology and China for Yahoo Finance, followed by Twitter
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