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Amazon Stock Falls on Weaker Sales Outlook
2024-08-01 23:55:08
Stocks
Business
Technology

Amazon Stock Falls on Weaker Sales Outlook

Amazon's stock fell 5% after reporting Q3 sales guidance below estimates. The company beat EPS but missed revenue.

AWS saw strong growth, while advertising missed. Investors have limited patience for massive AI spending, heightening scrutiny on Wall Street.

Despite beating expectations for Q2 earnings, Amazon's revenue missed and the company gave a lower sales outlook. AWS sales grew 18.7%, but advertising and third-party seller fees fell short.

CEO Jassy has cut costs, but North American retail operations missed. Amazon's focus on AI to compete with Microsoft and Google has led to increased investments, impacting margins.

The company projects lower-than-expected revenue for Q3. Despite strong growth in AWS and online store sales, investors remain cautious, favoring lower-priced goods.

The stock is down over 4% post-earnings, reflecting the scrutiny on Big Tech results.

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Dow Jones futures fell as Microsoft's weak Azure growth and AMD's uncertain guidance weighed on investor sentiment. The market rally showed divergence, with small caps and non-tech sectors remaining steady while tech leaders like Nvidia faced a sell-off. Microsoft reported mixed results, with Azure revenue growth decelerating and AI spending surging. AMD, on the other hand, reported strong earnings and provided positive guidance. Despite the market turbulence, top analysts added Nvidia to their top pick list, citing strong AI chip demand. The Fed meeting looms ahead, leaving investors awaiting the rate decision. Microsoft's CEO, Satya Nadella, reassured investors that profits from the company's AI investments are on the horizon. The company remains focused on leading the AI era and aims to deliver substantial cloud revenue growth driven by AI. The performance of Microsoft's personal computing business will also be closely watched by investors.

Amazon Stock Declines on Disappointing Sales Outlook

Amazon's stock dropped 5% as Q3 sales guidance missed estimates, despite exceeding EPS expectations. AWS showed strong growth, while advertising revenue fell short. Amid Big Tech earnings reports, including Microsoft, Alphabet, Meta, and Apple, investors are wary of significant AI spending. The company faces increased competition from ecommerce giants like Temu and Shein. The Q3 revenue and profit forecasts below expectations led to an 8% decline in stock price. Amazon is ramping up capital expenditures to boost AI and cloud services, aiming to stay ahead in the market. Major news events like the Olympics and political disruptions have impacted consumer spending habits, posing challenges in sales forecasting, according to Amazon's CFO. This uncertain landscape may also influence marketing strategies of other companies amidst ongoing economic pressures.

Read 40 more recent news on this topic

The press radar on this topic:

Yahoo Finance
1. August 2024 um 20:58

Amazon stock tumbles on weaker than expected sales outlook

Finance
Economy
Technology
Amazon's stock fell 5% after reporting Q3 sales guidance below estimates. The company beat EPS but missed revenue. AWS saw strong growth, while advertising missed. Amazon's report came amid Big Tech results, including Microsoft's cloud revenue miss, Alphabet's YouTube ad revenue miss, Meta's better-than-expected results despite warning of 'significant' capital expenditures in 2025, and Apple's earnings. Investors have limited patience for massive AI spending, heightening scrutiny on Wall Street.
Yahoo Finance
1. August 2024 um 20:04

Amazon projects quarterly revenue below estimates, shares slide

Economy
Technology
Finance
Amazon Q2 profit and AWS sales beat, but Q3 revenue missed. Consumers cautious, favoring lower-priced goods. AWS revenue grew 19% to $26.3B; ads missed at $12.8B. Amazon spent $30.5B on capex in H1, plans AI chatbot Rufus. Focuses on AI to compete with Microsoft, Google. Amazon stock gained 23% YTD; CEO Jassy cited AWS growth acceleration. Amazon's online store sales grew only 5% in Q2, down from 7% in Q1.
Yahoo Finance
1. August 2024 um 21:17

Amazon Stock Slides On Q2 Revenue Miss, Disappointing Sales Outlook

Economy
Finance
Technology
Amazon's Q2 earnings beat expectations, but revenue missed. AWS sales grew 18.7%, exceeding forecasts. However, advertising and third-party seller fees fell short. The company also gave a lower sales outlook. Operating income rose 90% YoY, but North American retail ops missed. CEO Jassy has cut costs, and Amazon briefly hit $2T. The stock is down over 4% post-earnings, with an IBD Composite Rating of 78 and Relative Strength Rating of 82.
New York Times - Technology
1. August 2024 um 22:05

Amazon Reports $148 Billion in Second Quarter Sales

Economy
Technology
Finance
Amazon Q2: $148B sales, $13.5B profit. Retail 9% growth, 5.6% margins. AWS 19% growth, 35.5% margins. $16B capex, AI computing. Scrapped iRobot, $71.7B cash. Investing in Prime, NBA rights. Slower Q3. 11% more items sold. 20% ad growth.
EL PAÍS
1. August 2024 um 21:27

Amazons Ergebnisse erfüllen die Prognosen nicht, da sie durch Investitionen in Künstliche Intelligenz belastet sind

Wirtschaft
Technologie
Finanzen
Amazon meldet Ergebnisse, die unter den Markterwartungen liegen, da das Unternehmen mehr in Künstliche Intelligenz investiert, was sich auf seine Gewinnspannen auswirkt. Der Einzelhandel und die Werbung treiben jedoch weiterhin seine Gewinne an, die um 141% im Jahresvergleich steigen. Die AWS-Cloud-Computing-Sparte beschleunigt weiter, und das Unternehmen kündigt den Bau eines neuen Logistikzentrums in Puerto Rico an.
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