Amazon Touts Prime Day as Q2 Net Sales Rise 20%

Amazon Touts Prime Day as Q2 Net Sales Rise 20%

"It does create a shock to the system now", Olsavsky said of the speedier delivery effort. "We expect we'll be working through that for a number of quarters, but when the dust settles, we will regain our cost efficiency over time". The company had projected its costs to be $800 million in the quarter, but the costs ended up exceeding its guidance in the end.

During the quarter ended March, the number of items sold on Amazon increased by only 10%, compared to a 22% increase for the same period a year ago.

The second-quarter net sales figure excluded an $814 million unfavorable impact from year-over-year changes in foreign exchange rates, Amazon said. Revenue climbed 20% to $63.4 billion. Analysts were expecting $62.5 billion, according to IBES data from Refinitiv.

Amazon continued touting its expansion of Prime and one-day delivery as it posted second quarter sales up 20%. But its technical headcount for areas such as Amazon Web Services and its voice technology arm grew at almost twice the rate of overall hiring in the quarter, Amazon CFO Brian Olsavsky said on a call with investors Thursday.


Amazon doesn't say exactly how much its ad business makes, but lists it as part of its "other" revenue, which rose 37% from a year ago.

AMZN stock is correcting this morning after posting a mixed set of earnings for the fiscal second quarter. Sales of this division reached $8.4 billion (€7.54 billion). The internet business is facing greater competition from rivals such as Walmart and under greater scrutiny from government antitrust regulators and lawmakers who argue Amazon acts like a monopoly to dominate the field.

The Federal Trade Commission has been conducting an antitrust probe of the companies, and the Justice Department announced Tuesday it is opening a sweeping antitrust investigation of major tech companies and whether their platforms have hurt competition and stifled innovation.

Amazon Chief Financial Officer (CFO) Brian Olsavsky said in a conference call with investors Thursday that the company is putting more funds into the one-day delivery service. Its shares were down 1.4% as of about 9 a.m. PDT Friday.


These results are a bit of good news for the company as its now being held under the microscope by regulators and Australia could potentially regulate the market power of the tech giant. In six quarters no one will remember that they missed earnings estimates by $100 million but all of their competitors will still be playing catch-up when they report they have one-day shipping complete throughout their entire network.

Despite all the question marks, puzzles and Amazon's unpredictability, the company's potential remains intact.

Amazon reported lower-than-expected profits in its second quarter of 2019, as it faces unprecedented opposition from lawmakers and consumers over its growing power.


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