Category: Amazon sales

• Amazon fell as much as 8.1% in early trading, wiping $148 billion off the company’s market value.
• Investors were disappointed after revenues missed estimates and Amazon forecast lower-than-expected sales.
• Yet Amazon’s profit still jumped 50% year-on-year, and its cloud computing division outperformed.
• Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Amazon lost $148 billion of market value on Friday in early trading after the e-commerce giant forecast lower-than-expected sales in the third quarter and missed revenue estimates for the first time since 2018.

Shares in the company dropped as much as 8.1% on the Nasdaq exchange on Friday. That took Amazon’s market capitalization – the value of all its shares combined – to $1.67 trillion, $148 billion lower than at Thursday’s close.

Amazon then pared losses to stand 7.02% lower at $3,351.86 by 10.13 a.m. ET. The drop helped drag down the Nasdaq 100 index by 0.5%.

The online retailer published second-quarter earnings after the bell on Thursday, showing that sales jumped 27% year-on-year to $113 billion. But investors were left underwhelmed, as analysts had predicted a rise in sales to around $115 billion.

The market was also disappointed by Amazon’s sales forecast for the third quarter, which came in below expectations. Amazon said operating profit would be between $2.5 billion and $6 billion, compared with $6.2 billion in the third quarter of 2020.

Amazon’s lower-than-expected sales and forecasts were in large part down to people choosing to do less online shopping as the coronavirus pandemic eased, chief financial officer Brian Olsavsky told analysts. The retailer was one of the major beneficiaries in the outbreak of COVID-19, as people went online to buy essentials and gadgets while locked down at home.

Read more: Baird’s top tech strategist says opportunities in the space are limited amid supply chain issues and dot-com-era valuations – and details 3 strategies investors can use to reposition away from risky tech

The second-quarter results were still astounding by most standards, but Amazon’s stock price has become a victim of the company’s success, said Nicholas Hyett, equity analyst at broker Hargreaves Lansdown.

“It’s saying something when you can report quarterly sales roughly equal to the annual GDP of Ukraine and 33% operating profit growth and still disappoint the market,” he said.

Amazon’s operating profit rose 33% year-on-year to $7.7 billion in the second quarter. Its net profit jumped 50% to $7.8 billion, beating expectations, as did revenues at the Amazon Web Services cloud division.

• Amazon’s stock fell 6.5% in premarket trade after it missed quarterly sales estimates for the first time since 2018.
• The online retailer’s Q2 earnings report gave sales and profit forecasts that underwhelmed investors.
• Nonetheless, Amazon still posted a 50% jump in profit Thursday, and its cloud division beat expectations.
• Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Amazon‘s stock price fell 6.5% in premarket trading to $3,365 after it missed quarterly sales estimates for the first time since 2018 in its second-quarter earnings, as the pandemic-driven online spending frenzy cooled.

The e-commerce giant’s revenues jumped 27% year-on-year to $113 billion, its earnings report released after the market closed Thursday showed. But investors were left underwhelmed, as analysts had predicted a rise in sales to around $115 billion.

The market was also reacting to Amazon’s prediction that third-quarter revenue would come in slightly lower than analysts had been anticipating. It also said operating profit would be between $2.5 billion and $6 billion, compared with $6.2 billion in the third quarter of 2020.

Amazon’s lower-than-expected sales were in large part down to people choosing to shop online less as the coronavirus pandemic eased, the company’s chief financial officer, Brian Olsavsky, told analysts. The retailer was one of the major beneficiaries in the outbreak of COVID-19, as people went online to buy essentials and gadgets while locked down at home.

Read more: Baird’s top tech strategist says opportunities in the space are limited amid supply chain issues and dot-com-era valuations – and details 3 strategies investors can use to reposition away from risky tech

The second-quarter results were still astounding by most standards, but Amazon’s stock price has become a victim of the company’s success, said Nicholas Hyett, equity analyst at broker Hargreaves Lansdown.

“It’s saying something when you can report quarterly sales roughly equal to the annual GDP of Ukraine and 33% operating profit growth and still disappoint the market. You can see why Jeff Bezos would rather be jetting off into space,” he said.

Amazon’s operating profit rose 33% year-on-year to $7.7 billion in the second quarter. Its net profit jumped 50% to $7.8 billion, beating expectations, as did revenues at the Amazon Web Services cloud division.

Futures for the tech-heavy Nasdaq 100 were down 0.99% on Friday, in part because of investor reaction to Amazon’s earnings. Lower-than-expected second-quarter GDP figures and rising coronavirus cases also unnerved traders.

• Amazon’s stock fell 7% in premarket trade after it missed quarterly sales estimates for the first time since 2018.
• The online retailer’s Q2 earnings report gave sales and profit forecasts that underwhelmed investors.
• Nonetheless, Amazon still posted a 50% jump in profit Thursday, and its cloud division beat expectations.
• Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Amazon‘s stock price fell 6.7% to $3,358 in premarket trading after it missed quarterly sales estimates for the first time since 2018 in its second-quarter earnings, as economies reopened and the pandemic-linked online spending frenzy cooled.

The e-commerce giant’s revenues jumped 27% year-on-year to $113 billion, its earnings report released after the market closed Thursday showed. But investors were left underwhelmed, as analysts had predicted a rise in sales to around $115 billion.

The market was also reacting to Amazon’s prediction that third-quarter revenue would come in slightly lower than analysts had been anticipating. It also said operating profit would be between $2.5 billion and $6 billion, compared with $6.2 billion in the third quarter of 2020.

The US company’s lower-than-expected sales were in large part down to people choosing to shop online less as the coronavirus pandemic eased, the company’s chief financial officer, Brian Olsavsky, told analysts. The retailer was one of the major beneficiaries in the outbreak of COVID-19, as people went online to buy essentials and gadgets while locked down at home.

Read more: Baird’s top tech strategist says opportunities in the space are limited amid supply chain issues and dot-com-era valuations – and details 3 strategies investors can use to reposition away from risky tech

The second-quarter results were still astounding by most standards, but Amazon’s stock price has become a victim of the company’s success, said Nicholas Hyett, equity analyst at broker Hargreaves Lansdown.

“It’s saying something when you can report quarterly sales roughly equal to the annual GDP of Ukraine and 33% operating profit growth and still disappoint the market. You can see why Jeff Bezos would rather be jetting off into space,” he said.

Amazon’s operating profit rose 33% year-on-year to $7.7 billion in the second quarter. Its net profit jumped 50% to $7.8 billion, beating expectations, as did revenues at the Amazon Web Services cloud division.