Amazon (AMZN) recently reported its Q2 2024 earnings, revealing a mixed performance. The company achieved an earnings per share (EPS) of $1.26, surpassing analyst expectations of $1.03. However, its revenue of $148 billion fell short of the anticipated $149 billion. Despite this revenue miss, Amazon’s revenue still grew by 10.1% compared to the same quarter last year.
A notable highlight was Amazon Web Services (AWS), which saw a 19% year-over-year increase in revenue, reaching $26.3 billion. This growth in AWS is a significant positive indicator for Amazon’s long-term prospects, as it remains a critical driver of profitability.
Following the earnings report, Amazon’s stock experienced volatility, reflecting investor concerns over the revenue miss despite the EPS beat and strong AWS performance.
Looking ahead, analysts are optimistic about Amazon’s earnings growth, with an expected increase of 22.83% over the next year. This positive outlook is driven by continued strength in AWS and anticipated improvements in other business segments.
Overall, while the revenue miss has introduced some near-term uncertainty, the strong EPS performance and robust growth in AWS suggest that Amazon remains well-positioned for future growth.
