Andy Jassi, Chief Executive Officer of Amazon.Com Inc., during the GeekWire Summit in Seattle, Washington, USA on Tuesday, October 10th. 5, 2021.
David Ryder | Bloomberg | Getty Images
Sales for the three months ended June rose 7% to $121.23 billion, higher than Wall Street’s $119.09 billion expected. This represents the third straight quarter of Amazon’s annual single-digit revenue growth.
Amazon’s Q3 forecast suggests sales growth could pick up again to 13-17%. The company said it is forecasting $125 billion to $130 billion in revenue this quarter, while analysts had expected a sales forecast of $126.4 billion, according to Refinitiv.
Amazon and Apple reported bullish results in a bleak tech earnings season. facebook parent Meta, Alphabet as well as Microsoft they all posted disappointing quarterly results as high inflation, rising interest rates and other macroeconomic factors weighed on their business.
Wall Street hailed Amazon earnings report with one analyst call The e-commerce giant is “port in a macro storm” as it still seems to weather many headwinds challenging its tech counterparts.
“Overall, Amazon provided investors with a very net income for Q2 despite extreme macro-driven earnings volatility across technology,” Deutsche Bank analysts led by Lee Horowitz wrote in a note to clients on Friday. The firm, which maintains a buy rating on Amazon stock, has raised its price target to $175 from $155.
Several analysts said the results suggest that Amazon is making progress in overcoming the headwinds that have weighed on the company in recent quarters. Amazon faced with high costs related to labour, supply chain, energy and transport, as well as pandemic Covid-19, among other factors. CEO Andy Jassi said on Thursday that the company is continuing to operate at “more controllable costs.”
“Thanks to the successful two-day Prime Day event in July and MGMT [management] Discussing end-demand issues in its core business, we see that Amazon is well positioned to create a strong revenue growth story in 2H22. [the second half of 2022]analysts at Goldman Sachs, led by Eric Sheridan, said in a research note on Friday. The firm maintained its buy recommendation for the stock.