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After Facebook’s stock plunged 19% on Wednesday and Netflix’s low subscriber growth rates, Amazon’s Q2 Earnings reclaimed the FANG stocks’ performance. Amazon ended Q2 with $19.8B in cash and $24.6B in debt.
Q2 Profits of $5.07 per share – way ahead of Wall street’s estimate of $2.50 per share.
AWS contribution to Q2 profits stood at $6.1 billion, up 52% from last year.
surged to 3 billion, up from 628 million in Q2 2017. Net sales increased to 52.9 billion, up from 38 billion in Q2 2017, although it remained below the average analyst estimate of Amazon’s Q2 earnings which was 53.2 billion.
There are an estimated 5 million sellers on Amazon today and Amazon handles fulfillment and advertising in exchange for a commission on sale from these third-party sellers.
More number of Prime members joined on Prime Day 2018 and more than 100 million products were purchased, despite the hike in membership fee to $119. Prime day sales were not included in Q2’s profits. AWS: As always, AWS was a major contributor to the bottom-line. Enterprise customers such as Ryan air and 21st Century Fox have hopped onboard AWS. Alexa: There are now thousands of developers across more than 150 countries building new devices using the Alexa Voice Service, and the number of Alexa-enabled devices has more than tripled in the past year.
According to Amazon’s Q2 earnings, they spent$2 Billion on acquisitions in the first six months of 2018. Incidentally, it’s the first time in Amazon’s 24-year history that it has spent more than $1 Billion on deals in consecutive years, after the Whole foods acquisition in 2017.
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RT @RangaEunny: Until recently the Amazon and Shopify systems were separate and distinct groups of entrepreneurs. But they have started to…
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