Amazon’s Q2 profit surges as net sales surpass $100B for third time


  • Amazon earned US$7.78 billion in net income on US$113.08 billion in net sales.
  • Online store sales grew 16%, while sales at Amazon Web Services rose 32%.
  • Amazon’s stock plunged over 5 percent in aftermarket trading.

Amazon.Com Inc. (NASDAQ: AMZN) on July 30 posted around 50 percent year-over-year growth in its second-quarter net income as the company recorded more than US$100 billion in net sales for the third consecutive quarter.

The Seattle-based e-commerce and technology giant’s second-quarter net income rose to US$7.78 billion, or US$15.12 per share, compared with the US$5.24 billion, or US$10.30 per share in the year-ago quarter.

Amazon’s consolidated net sales increased 27 percent to US$113.08 billion during the three months ended June 30 from US$88.91 billion in the same quarter of the previous year. While announcing its first-quarter results, Amazon had said it expects second-quarter net sales to grow up to 30 percent.

Amazon had reported US$8.11 billion net income in its first quarter on net sales of US$108.52 billion.

READ MORE: Amazon’s Net Profit More Than Triples In Q1 As Revenue Hits US$100B

Amazon’s stock fell over 4 percent in the after-hours trading on Thursday.

Segment-wise results

Amazon’s net product sales increased to US$58 billion from US$50.24 billion, while net service sales jumped to US$55.08 billion from US$36.67 billion in the year-ago quarter.

Online store sales came in at US$53.16 billion, up 16 percent year over year. Amazon Web Services sales surged 32 percent to US$14.81 billion.

Net sales from subscription services associated with Prime memberships, digital video, audiobook, digital music and e-book services climbed 32 percent to US$7.91 billion. Third-party seller services sales increased 38 percent to US$25.09 billion.

Net sales from its North American segment totaled US$67.55 billion, while the international segment reported US$30.72 billion in net sales.

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In the second quarter, Amazon announced its US$8.45 billion deal to acquire MGM Studio.

READ MORE: Amazon Announces US$8.45B Deal To Buy MGM

Third-quarter outlook

Amazon projects its net sales during the third quarter to grow between 10 percent and 16 percent to the range of US$106 billion to US$112 billion.

Share performance

Amazon currently has a market cap of US$1.816 trillion. It has a P/E ratio of 69.06.

The stock returned 10.43 percent year to date and was traded between US$2,871.00 and US$3,773.08 in the last one-year period.

Amazon’s stock ended Thursday’s trading at US$ 3,599.92, down 0.84 percent.

READ MORE: Facebook doubles Q2 profit; PayPal’s net profit declines 23%

Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view. 

The reference data in this article has been partly sourced from Refinitiv.