Amazon Has for the First Time Reached 12-Month Net Sales of $150 Billions

Amazon Has for the First Time Reached 12-Month Net Sales of $150 Billion

According to Amazon‘s Q2 earnings report (PDF), the company reached net sales of $150 billion over the course of the twelve months between Q2 2016 and Q2 2017.

One can only be baffled by how Wall Street reacts to Amazon sometimes. Business Insider:

Amazon’s second quarter earnings fell well short of Wall Street’s expecations.

Earnings missed analysts’ forecasts by more than a dollar a share.

Investors sold the stock on the news. In recent trading after the bell, Amazon’s stock was down $22.45 a share, or more than 2%, to $1,023.55. […]

Revenues of $38 billion. Analysts were expecting $37.2 billion. Amazon posted sales of $30.4 billion in the second quarter last year.

​Not an earnings miss should make you panic as an Amazon investor but a slip in revenues.

For next quarter, ​Amazon expects a result somewhere between an operating loss of $400 million to an operating profit of $300 million.


Retail Dive conclusion says it all:

Its earnings number was technically a miss, but it’s difficult to deny that Amazon is winning on several key measures including growth, both on and offline, its sticky Prime membership base, innovations through its Echo devices (providing another source of stickiness) and a push into several retail categories. […]

Given Amazon’s long-term outlook, quarterly analysis threatens to miss the big picture. Digging into the details, it becomes harder and harder to see even the earnings whiff as much of a miss, considering that Amazon is racking up not just sales but also revenues from a variety of sources, including subscription fees, but, most especially Prime, which Saunders called “one of the most defensible parts of Amazon’s proposition.”

​So, what happened this quarter?

For one, India. India Times:

International losses, fuelled by Amazon’s aggressive India growth, grew to $724 million from $481 million in Q1 and $135 million in the second quarter of 2016.

One of the large spends in India came from video content, with Prime Video also launching its first Indian Amazon Original, Inside Edge, the first of 18 Indian Original Series. The web series was mentioned by Bezos in the financial results. […]

Last year, Amazon announced it would pump in $3 billion more in India over its initial commitment of $2 billion. Earlier this month, Amazon invested another Rs 1,680 crore in its Indian unit, and a more recent investment of Rs 1,382 crore in to its data and cloud service business here.

​And, as always these days, AWS.

GeekWire:

The cloud division of Amazon reported a 42 percent increase in revenue compared to the previous year, although profits were flat.

Revenue for the second quarter was $4.1 billion, up from $2.9 billion in the year ago quarter. Operating income was $916 million, compared to $718 million in the second quarter last year.

​AWS is mostly responsible for Amazon‘s profits:

The story is still the same: Amazon is making massive investments. Increasingly in logistics and in the international business in general, these days. AWS on the other hand is reaping profits and competitive advantages from massive scale effects.

Amazon is still gunning for that zero but the overall business may have become to complex to come even close to that narrow target.

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