- The stock price of Amazon.com, Inc. (NASDAQ: AMZN) fell over 7% pre-market. This is why it happened.
The stock price of Amazon.com, Inc. (NASDAQ: AMZN) fell over 7% pre-market. While the company reported stronger than expected second-quarter earnings, the results were slightly lower than expectations.
Net income for the three months ending in March was $15.12 per share — which is over 46% higher than the $10.30 last year. This figure was well above expectations.
Group revenues increased 27.2% from last year to $113.1 billion, but that is slightly lower than the $115 billion that analysts were expecting. The company’s operating expenses increased 26.9% to $105.38 million.
Operating cash flow increased 16% to $59.3 billion for the trailing 12 months, compared with $51.2 billion for the trailing 12 months ended June 30, 2020.
Q3 2021 Guidance:
Analysts were expecting the company guidance to be higher.
— Net sales are expected to be between $106 billion and $112 billion or to grow between 10% and 16% compared with third-quarter 2020.
— Operating income is expected to be between $2.5 billion and $6 billion, compared with $6.2 billion in third-quarter 2020. This guidance assumes approximately $1 billion of costs related to COVID-19.
KEY QUOTE:
“Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE, food, and other products that helped communities around the world cope with the difficult circumstances of the pandemic. At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud. Thank you to all of our passionate, innovative, mission-driven employees around the world for continuing to stay focused on delivering for customers—I am very excited to work with you as we invent and build for the future.”
— Andy Jassy, Amazon CEO
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
