Amazon was the last of the Big five US Tech Companies to report the earnings for the three months ended June 21.’
Amazon’s Record-Breaking Quarter
Amazon reported another record-breaking quarter this year, although falling a bit short of wall street expectations in terms of sales.
Sales since May 15 have been up just in the mid-teens, excluding Prime Day, Olsavsky told analysts.
Amazon Web Services has fared better. The cloud computing division that Jassy long ran grew revenue 37% to $14.8 billion, ahead of estimates of more than $14.1 billion.
Although AWS has lowered prices, it has signed new multi-year agreements with large customers, Olsavsky said.
More than a year into the Pandemic, the Financial lustre of Amazon seems to fade. The company is still facing the task of climbing higher; revenue surged 44% in the first quarter of the year, the figure dropped to 27% for the period ended June 30.
The E-commerce platform saw a total sales growth of 27% to $113 billion in the quarter, offsetting a slowdown in its core business with the remarkable increase in its cloud and advertising segments.
With Brick and mortar stores shut, amazon posted record profits of more than 200 million Prime loyalty subscribers and recruited over 500000 workers to keep up with the increasing demands.
The CFO was quick enough to make it crystal clear that in year-over-year growth’s slowdown, the reason that lies behind is the results caused by lockdowns in Q2.
Although the guidance of Facebook and Apple were modest, warning the investors to make them understand that the very high growth wouldn’t sustain forever.
The GAFAM Group
The Entire group of GAFAM group, in essence, Google, Apple, Facebook, Amazon, Microsoft, saw a profits surge in the June Quarter as the “Big Tech” continues to profit from the Pandemic’s situation on online advertisements, e-commerce and spending of the consumers.
Amazon has gained a lot of profit, in essence to the Pandemic.
Amazon’s Blockbuster Quarter Story
The Unbelievable Growth of Amazon’s June Quarter