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<p class="has-drop-cap">Amazon.com Inc. (NASDAQ: AMZN) reported <a href="https://ir.aboutamazon.com/news-release/news-release-details/2024/Amazon.com-Announces-Second-Quarter-Results/default.aspx" target="_blank" aria-label="second-quarter earnings (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">second-quarter earnings</a> that fell short of Wall Street expectations, sending its stock tumbling in premarket trading. The e-commerce giant’s mixed performance across its business segments and a cautious outlook for the third quarter have raised concerns among investors about the company’s growth trajectory in a challenging economic environment.</p> 
<h3 id="amazon-s-q2-revenue-falls-short-of-expectations-core-retail-business-showing-signs-of-fatigue">Amazon’s Q2 Revenue Falls Short of Expectations, Core Retail Business Showing Signs of Fatigue</h3> 
<p>Despite beating earnings estimates with $1.26 per share against the expected $1.03, Amazon’s overall revenue of $147.98 billion missed analyst projections by approximately $580 million.</p> 
<p>The company’s cloud computing division, Amazon Web Services (AWS), outperformed expectations with $26.3 billion in revenue, while third-party seller services grew by 12% year-over-year. However, the core retail business showed sluggishness, with the online stores segment growing only 5% compared to the previous year. Although the advertising unit grew by 20% to $12.77 billion, fell short of the anticipated $13 billion.<br><br>In the fiercely competitive digital advertising space, Amazon’s 20% growth in ad revenue placed it behind Meta’s (NASDAQ: META) 22% increase but ahead of Google’s (NASDAQ: GOOG) 11% and Snap’s (NYSE: SNAP) 16%.</p> 
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<h3 id="amazon-stock-dips-over-8-in-premarket-trading">Amazon Stock Dips Over 8% in Premarket Trading</h3> 
<p>The disappointing earnings report and cautious guidance for Q3 triggered a significant sell-off in Amazon’s stock during <a href="https://tokenist.com/investing/how-to-trade-after-hours/" rel="dofollow" class="deco-link">premarket trading</a>.</p> 
<p>As of 6:11 AM EDT, Amazon shares were down 8.49% to $168.45, reflecting investor concerns about the company’s near-term prospects. Despite this setback, Amazon’s stock has shown strong performance year-to-date, with a 21.15% return that outpaces the S&amp;P 500’s 14.19% gain.<br><br>Amazon’s market capitalization is $1.93 trillion, with a <a href="https://tokenist.com/investing/p-e-ratio/" rel="dofollow" class="deco-link">trailing P/E ratio</a> of 51.53 and earnings per share of $4.19. The company’s forward P/E of 39.37 and <a href="https://tokenist.com/investing/peg-ratio/" class="deco-link">PEG ratio</a> of 1.96 suggest that investors still expect significant growth despite the current challenges.</p> 
<p>With a profit margin of 6.38% and a return on equity of 20.31%, Amazon demonstrates its ability to generate profits. However, the lower-than-expected Q3 guidance, projecting revenue between $154 billion and $158.5 billion and operating income between $11.5 billion and $15 billion, indicates that the company anticipates ongoing headwinds in the coming months.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe> 
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p> 
<h3 id="br"><br></h3> 
<p>The post <a rel="nofollow" href="https://tokenist.com/amazons-q2-earnings-disappoint-amzn-tumbles-in-premarket-trading/">Amazon’s Q2 Earnings Disappoint, AMZN Tumbles in Premarket Trading</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Amazon’s Q2 Earnings Disappoint, AMZN Tumbles in Premarket Trading

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