Amazon announced weaker Q2 sales than estimates at $113.1bn vs. forecasts of $115.2bn. Nevertheless, this was its third consecutive quarter of over $100bn in sales. Revenues grew 27% YoY and profits were at $7.8bn in the quarter, up 48% YoY. Amazon’s core online store business grew 15%, the slowest since 2019. The company described that the lifting of lockdown restrictions and increased vaccination meant that it was seeing people getting out more doing other things besides shopping, as per Amazon’s CFO Brian Olsavsky. He also mentioned that the spending of Prime membership customers “moderated”. AWS, Amazon’s cloud computing division, reported Q2 revenue of $14.8bn compared to $10.8bn, increasing 72% YoY, maintaining a strong performance. Amazon predicted a slowdown in its Q3 profits and forecasted operating income to stand between $2.5-6bn, compared to $6.2bn in the same period last year. “Other” business, which mainly includes growing advertisements, saw an increase in revenue of 88% YoY to $7.9bn and continues to report strong growth. Amazon shares fell in after-hours trading by around 7%.
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