Amazon’s Revenue Forecasts Revealed, Its Stock Is Falling

Key conclusions

Amazon’s net sales in the second quarter totaled $147.98 billion, up 10% year over year and below expectations of $148.67 billion.
Amazon Web Services and advertising revenues saw significant growth.
The company’s projected revenues for the third quarter were mostly lower than analysts’ expectations.

Amazon (AMZN) shares fell after the close of trading on Thursday after the tech giant released third-quarter revenue guidance that disappointed investors.

The company had forecast net sales for the current quarter of $154 billion to $158.5 billion, while analysts were predicting $158.42 billion — near the high end of Amazon’s range — according to Visible Alpha. The results will include Amazon’s latest Prime Day sales event, which the company called its biggest ever.

Amazon’s second-quarter net sales were $147.98 billion, up 10% year over year and below expectations of $148.67 billion. Earnings per share (EPS) were $1.26, compared to 65 cents in the year-ago quarter and the analyst consensus of $1.04. Amazon Web Services revenue rose 19% year over year to $26.3 billion.

Advertising revenue rose 12% to $12.77 billion. Advertising on Prime Video will continue to be a focus for Amazon: Shows and movies on the platform began having limited ads this year, and the NBA earlier this month accepted Amazon’s reported $1.8 billion offer to stream a bundle of games.

Amazon shares fell more than 5% in late trading Thursday after losing 1.6% during the regular session. The stock has risen more than 20% in 2024.