Amazon seen reporting big earnings, revenue growth
Amazon is expected to report large gains in second-quarter earnings and revenue amid growth in cloud services and Prime membership.
Analysts project that the e-commerce giant will report adjusted earnings of $2.50 a share on Thursday, well ahead of the 40 cents a share it earned in the same quarter last year. Revenue is projected to hit $53.27 billion, which would reflect a 40% increase.
The forecast includes an upbeat view of Amazon’s cloud-computing division. Wall Street is looking for Amazon Web Services revenue to come in at $5.98 billion, according to FactSet, up from $4.1 billion a year ago.
Amazon’s revenue has also benefited from the addition of Whole Foods, which the company acquired last year.
Investors are watching Amazon’s quarterly report for details on spending, including Prime Video content. The company has made large investments in original programming and other video content as it competes with video streaming services such as Netflix. In the first quarter, Amazon said its spending on technology and content jumped 40%, according to TheStreet.
Amazon CEO Jeff Bezos revealed for the first time in April that the company has more than 100 million paid members of its Prime subscription service, which includes free shipping, video streaming and other perks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 198.30 | -4.58 | -2.26% |
Amazon raised the annual price of a Prime subscription to $119, up from $99. The increase took effect in May for new members.
Amazon shares have gained about 59% since the start of the year. The stock rose 1.9% on Wednesday, a day before Amazon’s earnings report.
