Trading and cloud services giant Amazon released its quarterly performance tonight. Analysts surveying the company expected a significant increase in profits and revenue compared to the same quarter last year. At the same time, forecasts indicated a slight decline in performance compared to the first quarter of the year – which was a record quarter for Amazon. Let’s start with the bottom line, Amazon recorded revenue for over a hundred billion dollars for the third time in a row, but missed analysts ’forecast. The stock is down more than 5% in the latest trading.
Like most retailers in the world, Amazon has enjoyed a flood of shoppers since the epidemic began, which has brought tremendous growth in Amazon’s e.commerce activity and in general. Still, analysts predict that growth will slow now that the world economies have reopened.
Wall Street analysts have estimated that earnings per share will reach $ 12.28, more modest than the figure recorded in the first quarter of the year ($ 15.79 earnings per share). At the same time, this is a nice growth compared to the corresponding quarter last year – when it recorded earnings of $ 10.3 per share. In practice, earnings per share reached $ 15.12 per share, above forecasts.
In terms of revenue, the market expected the company’s sales to reach $ 115.4 billion during this quarter, compared to revenue of $ 108 billion in the previous quarter. In practice, revenues totaled about $ 113 billion, less than forecast.
Also in terms of operating profit, the company missed a bit. Expectations were $ 7.8 billion, and in practice it stood at $ 7.7 billion.
Growth was expected to slow as the world economies reopened
Amazon recently released a job ad for a digital asset specialist that will lead and develop the company’s digital currency and blockchain strategy. The reporting of the vacancy has led to sharp rises in the crypto market and bitcoin in particular, but Amazon was quick to deny that it would accept the currency as a means of payment any time soon.
Amazon’s stock has climbed 14% since the beginning of the year, and has soared nearly 20% in the last 12 months ’calculation. Earlier this month, Amazon founder Jeff Bezos resigned as CEO and became acting chairman, and the company’s management moved to Amazon’s CEO of Cloud Services (AWS), Andy Jesse.