With sales over $100 billion for three consecutive quarters, Amazon has become the world’s largest ecommerce company after experiencing an unprecedented boom as a result of the global Covid-19 pandemic.
On the 29th (local time), the U.S. business media reported that Amazon’s second quarter sales were 27% higher than the same period last year.
The second-quarter net income in company history was $7.778 billion, up 48% from the same period last year. The company reported earnings per share of $15.12, beating the market consensus of $12.28. Amazon’s sales surpassed $100 billion for the first time in the fourth quarter of last year, and for three consecutive quarters in the first and second quarters of this year.
Despite this, the industry took notice of the fact that the growth rate in the second quarter was significantly lower than the one in the same period last year (41%) FactSet, a U.S. market research firm, had predicted total sales of $115.4 billion. The cloud computing and advertising businesses grew 37 percent and 87 percent, respectively, but the online shopping division, the company’s core business, grew much slower than it did last year. As part of the announcement, Amazon estimated third-quarter sales to be in the range of $106 billion to $112 billion, which is also below the $119.3 billion market estimate.
Amazon CFO Brian Olsavsky said the slowdown in sales was a result of the massive explosion in purchases last year. According to him, the results reflect more people moving from Europe and the U.S. and more activity outside of shopping.
Shares of Amazon were down 0.84 percent on the day and have fallen by nearly 5 to 6 percent in after-hours trading since the results were announced.