Amazon stock slips 5% in afterhours trading as outlook trails estimates

Amazon (NASDAQ: AMZN) reported second-quarter earnings that surpassed analyst expectations, but its stock fell 5% in after-hours trading due to softer-than-anticipated guidance for the third quarter.

The e-commerce and cloud computing giant posted adjusted earnings per share of $1.26 for the quarter ended June 30, 2024, beating the analyst estimate of $1.03.

Revenue came in at $148.0 billion, slightly below the consensus estimate of $148.68 billion but up 10% YoY from $134.4 billion in the same quarter last year.

Amazon's third-quarter revenue guidance of $154-158.5 billion fell short of analyst expectations of $158.2 billion, contributing to the stock's decline.

"We're continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth," said Andy Jassy, Amazon President&CEO, highlighting the company's cloud computing segment.

Amazon Web Services (AWS) reported sales of $26.3 billion, up 19% YoY, while the North America segment saw a 9% increase to $90.0 billion. The International segment grew 7% to $31.7 billion, or 10% excluding foreign exchange impacts.

Operating income more than doubled to $14.7 billion from $7.7 billion in the second quarter of 2023.

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