Amazon reported second quarter earnings after the bell on Thursday that offered investors a disappointing outlook on its business for the current quarter.
) stock fell over 9% in early trading on Friday after the retail and cloud giant offered a current quarter forecast on Thursday that fell short of expectations on both the top and bottom lines.
Amazon generated revenue of $148 billion, a touch below the $148.8 billion that analysts expected, but even the slight miss failed to impress.The company's booming advertising segment, which has routinely grown by double-digit percentages, continued to show strength, but that segment too came in just below expectations, registering $12.8 billion in revenue versus the $13 billion expected.
Amazon CFO Brian Olsavsky told reporters on a call after earnings that AWS is poised to generate more than $105 billion annually. Olsavsky said the company has spent just over $30 billion in the first half of the year on capital expenditures, owing to the growing need for AWS services, including demand for generative AI tools. Amazon expects those investments to increase for the second half of the year, he said.from the likes of Temu and Shein, companies that specialize in low-cost goods that rely on a direct-from-factory supply chain.
Amazon Web Services Top And Bottom Expectations
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