Amazon (AMZN, $134.95) posts Q2 loss; beats revenue expectations
Amazon posted a second-quarter loss of -$2 billion, or -20 cents a share. The loss was attributed partly to its investment in electric truck manufacturer Rivian. It is also the first time that the e-commerce giant has posted back-to-back quarterly losses since the second and third quarters of 2014. In the year-ago quarter, Amazon reported earnings of 76 cents a share.
The company’s revenue in the quarter came in at $121.2 billion, vs. $113.08 billion a year ago. Revenues topped analysts’ expectations of $119 billion (according to FactSet).
Amazon incurred second-quarter operating loss of -$2.4 billion in its e-commerce business, on net sales of $101.5 billion. In the year-ago quarter, the segment reported an operating profit of $3.51 billion on net sales of $98.27 billion. Analysts expected an operating loss of -$3.58 billion on sales of $100.18 billion (according to FactSet).
The Amazon Web Services cloud computing segment had an operating income of $5.72 billion on revenue of $19.74 billion in the quarter , up from operating profit of $4.19 billion on revenue of $14.81 billion a year ago. Analysts on average predicted operating income of $6.04 billion on net sales of $19.56 billion for the business.
“AWS continues to grow at a fast pace and we believe we are still in the early stages of enterprise and public-sector adoption of the cloud,” Chief Financial Officer Brian Olsavsky mentioned in a conference call (as reported in MarketWatch).
As of the end of the second quarter, Amazon reported a workforce of 1.523 million workers, lower than 1.622 million at the end of the first quarter. That is the largest quarterly decrease in Amazon’s workforce in company data going back to the beginning of 2018. “We have also moved quickly to adjust our staffing levels and improve the efficiency of our expanded operations network,” Olsavsky said. “We have slowed our 2022 and 2023 operations expansion plans to better align with expected customer demand. While there is still work to be done, we made good progress in Q2.”
AMZN in downward trend: price dove below 50-day moving average on February 18, 2025
AMZN moved below its 50-day moving average on February 18, 2025 date and that indicates a change from an upward trend to a downward trend. In of 46 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 07, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on AMZN as a result. In of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on February 07, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for AMZN crossed bearishly below the 50-day moving average on February 21, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for AMZN entered a downward trend on March 12, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where AMZN's RSI Oscillator exited the oversold zone, of 19 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 20 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 342 cases, the price rose further within the following month. The odds of a continued upward trend are .
AMZN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. AMZN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.184) is normal, around the industry mean (4.370). P/E Ratio (35.061) is within average values for comparable stocks, (49.891). Projected Growth (PEG Ratio) (1.630) is also within normal values, averaging (1.135). Dividend Yield (0.000) settles around the average of (0.040) among similar stocks. P/S Ratio (3.258) is also within normal values, averaging (5.186).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a provider of on-line retail shopping services
Industry InternetRetail