Amazon earnings preview: Q3 may hinge on web services
Amazon.com is forecast to report an 11% rise in revenue to $141.59 billion and a more than doubling in adjusted earnings per share of 58c.
Being the largest e-commerce company in the world, e-commerce remains a key driver of top-line growth for the company with online stores the largest business segment, representing about 40% of group sales. This segment is forecast to grow by 6% to $56.84 billion. But will Amazon Web Services maintain its stellar growth? Amazon is the largest publicly listed cloud company in the world. In the June quarter, Amazon increased AWS sales by 12% to $22.1 billion, a significantly lower growth rate than in recent years due to cautious spending by enterprises.
(AI Video Transcript)
Amazon's revenue
Amazon.com is going to release its financial results, and people are really excited to see how much money they made, especially from their cloud businesses. Experts think that Amazon's revenue will go up by 11 percent to $141.59 billion. They also think that their earnings per share will more than double to 58 cents.
Amazon Web Services
Amazon is known for its online stores, and they make about 40 percent of their money from them. It's predicted that their online stores will grow by 6 percent to $56.84 billion. But what everyone is really curious about is Amazon Web Services (AWS). AWS is like a big cloud where people can store information and do other cool computer stuff. In the last three months, AWS made $22.1 billion in sales, which was a 12 percent increase. Now, everyone wants to see if AWS can keep growing at that speed. Some people are worried that other companies might not spend as much money on AWS in the future, which could slow down its growth.
Amazon's financial results
The excitement about Amazon's financial results affected the price of their stock. Yesterday, the stock went down because of other companies' results. This morning, experts think that Amazon's stock will be sold for $119.08.
Amazon's financial results are really important because they give us a good idea of how things are going in the world of online shopping and cloud computing. Amazon is the biggest online shopping company in the world, and their success has made them one of the most valuable companies out there. Investors and people who study businesses will be paying close attention to Amazon's results to see what it means for the future of online shopping and technology.
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