On July 28, 2022, Amazon presented its results for the second quarter of 2022. Over this period, Amazon announced that it generated more revenue than expected and saw its turnover as well as the value of its shares jump compared to the quarter. previous.
Rise in Amazon’s revenue and stock price
The American e-commerce giant saw its turnover increase by 7% between April and June 2021 compared to the first quarter of 2022, rising to 121 million dollars. Its stock is also up more than 10% after the NASDAQ close.
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However, there remains a black spot since the firm recorded a net loss of 2 billion dollars due to a loss on investment estimated at 3.9 billion dollars in the car manufacturer Rivian, specializing in electric vehicles. One of Amazon’s goals is to offer delivery with Rivian electric vans to decarbonize last-mile logistics. But the manufacturer is experiencing significant difficulties in its production chain. Shares of this company fell 49% in the second half, which immediately triggered an investment loss for Amazon.
” Despite inflation driving up the price of fuel, energy and transportation, we are making progress on more controllable costs […] in particular by improving the productivity of our network of sorting and logistics centers “, specifies Andy Jassy, general manager of Amazon in a press release published by BusinessWire.
Amazon Web Services and advertising drive group revenue
As for Amazon Web Services (AWS), the cloud subsidiary of the e-commerce giant, the results are also above expectations. AWS earned $19.55 billion in revenue, a very respectable figure. Thus, sales jumped 33% compared to the second quarter of 2021. The operating profit of Amazon’s cloud department is $5.7 billion, a figure higher than the operating profit of the e-commerce branch. of the firm, hovering around 3.3 billion dollars, against 7.7 billion a year ago.
Amazon’s cloud segment is increasingly carrying the group, like its advertising revenue which climbed 18% between April and June 2022. By comparison, Meta recorded a drop in revenue, the first of its history, while at Alphabet, the advertising business grew by 12%, which is nevertheless a slowdown compared to the previous quarter.
To combat AWS hegemony, Google, Oracle, and Microsoft have appealed to public agencies and the US government to make use of multicloud. These tech giants see these institutions as prioritizing contracts with Amazon in order to take advantage of its cloud services. A situation of domination that thwarts these three technological players.
For the current quarter, Amazon expects operating profit of between $0 and $3.5 billion, compared to $4.9 billion in the third quarter of 2021. If the e-commerce sector has exploded with the health crisis caused by the Covid-19, it has come up against other difficulties such as those related to the supply chain or inflation. Recently, the firm decided to increase the price of its subscription to Amazon Prime, in order to fight against this inflation.