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Amazon posted second-quarter revenue of $121.2 billion, up 7%. This increase could even have reached 10% without the exchange rate effect, which penalizes the revenues of all the American tech giants.
© Getty — Soeren Stache
Amazon should finally restore color to Wall Street. And for good reason, the American giant reassured the markets by announcing better than expected quarterly results for the period from April to June 2022. Over these three months, the Seattle octopus achieved a turnover of 121 .2 billion, up 7%. This increase could even have reached 10% without the exchange rate effect, which penalizes the revenues of all the American technological giants.
Once again, Amazon was able to rely on its cloud branch, which garnered $19.8 billion in revenue in three months, to exceed analysts’ expectations in the second quarter. Over this period, Amazon Web Services (AWS) saw its activity increase by 33%, compared to 37% in the first quarter. Despite slowing growth in the cloud, the American group remains the undisputed leader of the world market, with 33% market share, ahead of Microsoft Azure (21%) and Google Cloud (8%), according to the firm Canalys.
A net loss of 2 billion dollars because of Rivian
Wall Street reacted to these results by jumping more than 10% in Amazon’s stock during electronic trading after the closing of the New York Stock Exchange on Thursday, July 28. The American company, however, recorded a net loss of 2 billion dollars between April and June, due to a loss on investment of 3.9 billion in the manufacturer of electric pickups Rivian, led by Andy Jassy. And this, after having already lost 3.8 billion dollars in the first three months of the year. This contrasts with the 7.8 billion in profits made in the second quarter of 2021. However, the American giant was still enjoying the impact of the Covid-19 pandemic, which perpetuated consumers’ online habits thanks to several confinements. .
Despite the fading effects of the pandemic, Amazon is weathering the difficult economic climate brought on by soaring global inflation, the war in Ukraine, and supply chain challenges. “Despite continued inflationary pressures on fuel, energy and transportation costs, we are making progress on the more controllable costs we referenced last quarter, including improving the productivity of our distribution network.”said Andy Jassy, the boss of Amazon, on the occasion of the publication of the quarterly results of the group.
Amazon raises Prime prices to mitigate the effects of inflation
Inflation is also the main reason given by the company to justify the sharp increase in subscription prices to its Prime service in Europe, after having done the same in the United States at the start of the year. From September 15, in France, subscribing to Amazon Prime will cost €6.99 per month (compared to €5.99 at present) or €69.90 per year (compared to €49). That is an increase of 43% on the annual price and 17% on the monthly price. However, Amazon is counting on the attractiveness of its offer to limit the exodus of its subscribers. As a reminder, in addition to free and fast delivery, Prime allows access to the SVoD Prime Video service, to borrow e-books on Prime Reading, to listen to 2 million titles on Music Prime, or to have delivery shopping in a few hours with Monoprix.
Amazon Prime Video
Amazon Prime Video, the American online retail giant’s video-on-demand service. Via a monthly subscription, you have access to a large number of films and TV series, including quality original content.
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Version :
3.0.261.16341 -
Downloads:
247 -
Release date :
07/27/2022 -
Author :
Amazon Mobile LLC -
Licence :
commercial license -
Categories:
Video
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Operating system :
Android, Online service All Internet browsers, Windows 10/11, iOS iPhone / iPad, macOS
Regarding its premium service, Amazon will be able to count, for the current quarter, on the performance generated by its Prime Day, a commercial meeting reserved for Prime subscribers, which was held on July 12 and 13. Two days during which more than 200 million Prime subscribers worldwide took advantage of promotions on a multitude of products. On this occasion, more than 300 million items were purchased, or more than 100,000 per minute, according to the American group. But the latter still expects a complicated third quarter, with operating profit, a key indicator of profitability, of between 0 and 3.5 billion dollars, against 4.9 billion in the same period in 2021. in revenues, they should reach 125 to 130 billion dollars between July and September, an increase of 13 to 17% compared to the third quarter of 2021.