Amazon reported a 48 percent increase in second-quarter earnings to $7.8 billion from a year ago on Thursday, but shares in the internet and e-commerce behemoth dropped on a dismal revenue total. 27% to $113.1 billion total revenue rose, falling short of most Wall Street expectations and causing a 7% drop in after-hours trade.
On an earnings call, Amazon CFO Brian Olsavsky noted that one cause for revenue misses looked to be immunizations giving people the confidence to come out into the real world.
“Not only shopping offline but also living life and getting out,” Olsavsky said.
“It takes away from shopping time. It’s a good phenomenon and it’s great.”
During the pandemic, Andy Jassy, who took over as CEO from Jeff Bezos earlier this month, said Amazon remained focused on providing products and services to customers.
“Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE, food, and other products that helped communities around the world cope with the difficult circumstances of the pandemic,” Jassy said.
He further added that “Amazon’s cloud computing division AWS has helped so many businesses and governments maintain business continuity… as more companies bring forward plans to transform their businesses and move to the cloud.”
Despite the end of most pandemic lockdowns, Amazon’s results came after a slew of announcements from major online companies highlighting increasing earnings and revenues as digital lifestyles and work-from-home trends continue. Amazon has been chastised for its labor rules, although the company claims to pay above-average wages and has spent billions on employee safety.
During the epidemic, an increasing number of people resorted to Amazon for products and services, including food, and the company’s cloud computing segment developed to assist companies and individuals stay connected.
Amazon is also growing its artificial intelligence and streaming television businesses.
With operations in multiple countries, a market price of $1.8 trillion, and 1.3 million workers, Amazon has developed into one of the world’s most valuable corporations.