Amazon reports Q2 revenue up 7% YoY to $121.2B, $2B net loss vs. $7.8B net income in Q2 2021, and AWS revenue up 33% YoY; stock jumps 12%+
SEATTLE—(BUSINESS WIRE)—Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its second quarter ended June 30, 2022.
Amazon
Context & Ripple Effects
Amazon entered Q2 after a first-quarter net loss and weak Q2 guidance, following a period in which annual Q2 sales growth had slowed from 40% in 2020 to 27% in 2021. AWS had remained a faster-growing business through that sequence.
The reported loss contrasts with the prior-year Q2 profit, while AWS again outpaced companywide growth. Later coverage records a return to Q2 profitability in 2023, making this quarter a clear low point in Amazon's near-term earnings arc.
First-order effects
AMZN rose more than 12% after the release, indicating that investors gave substantial weight to the revenue result and AWS's 33% growth despite Amazon's $2 billion quarterly loss.
AWS becomes Amazon's strongest reported growth engine in the quarter, growing far faster than the company's 7% overall revenue increase.
Second-order effects
Amazon's investor narrative becomes more dependent on AWS growth as a counterweight to losses in the broader business, raising the importance of cloud performance in subsequent results.
The move from 27% companywide Q2 growth in 2021 to 7% in 2022 puts greater pressure on Amazon to show that slower sales growth can coexist with an eventual recovery in net income.
Third-order effects
Across the covered quarters, Amazon's earnings profile is becoming less defined by a single retail-growth rate and more by the balance between companywide scale, cloud growth, and profitability.
The subsequent 2023 profit recovery suggests quarterly losses need not determine Amazon's longer-run trajectory, but AWS's growth rate remains a separate benchmark for that recovery.
The trend: Amazon's quarterly story is shifting from rapid, broad-based sales expansion toward investor scrutiny of whether AWS growth can support profitability through slower overall revenue growth.
Amazon is another recession proof FAAMNG company whose size is incredible. • Ads revenue up +18%, vs Google's +12% and Meta's -1% • Laid off 99K people out of 1.52M (6.5%) • AWS revenue up +33%, vs Azure's +40% • Online retail -4%, physical stores +12% https://www.cnbc.com/...
$AMZN Q2: -Revenue beat by 1.76%; giant EPS miss -Solid Q3 guide: Rev +13%-17%; Opinc $0-$3.5B -@awscloud Rev +33% to $19.7B ($80B run rate )🔥 -AWS Profit monster delivering $5.7B opinc. The rest of the company lost $2.3B opinc. -Investors love it https://twitter.com/...
Meta, Snap, Twitter, Roku, and others say the ad market looks bad. But, “Amazon's ad business is a bright spot in an otherwise gloomy quarter for online advertising, and shows the company is picking up share in one of its fastest-growing businesses.” https://www.cnbc.com/...
Amazon Q2 revenues were up 7% over the prior year, the slowest YoY growth rate in company history. Its stock is currently up 10% in after hours trading. It's not the news but the reaction to the news that matters, revealing expectations/sentiment. $AMZN Data via @ycharts https://…
amazon's post-pandemic slump continued during Q2, with online store sales stagnating and revenues for product sales slowing for the second quarter in a row but AWS once again printed money, so it doesn't matter and the stock is up 12% ¯\_(ツ)_/¯ https://www.theinformation.com/ ...
Amazon CFO says on media earnings call that 57 percent of total units sold were sold by third-party sellers in Q2. Says that's the highest percentage in company's history.
Big beat for Amazon Most notable - 18% growth in online ads That means it's taking big share from $META and $GOOGL Facebook's ad business shrank and Google's grew 12% via @annierpalmer https://www.cnbc.com/...