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.”
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where AMZN advanced for three days, in of 334 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 19, 2024. You may want to consider a long position or call options on AMZN as a result. In of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 285 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for AMZN moved out of overbought territory on March 04, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on March 05, 2024. 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 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable 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.
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 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 (9.259) is normal, around the industry mean (17.733). P/E Ratio (62.024) is within average values for comparable stocks, (71.135). Projected Growth (PEG Ratio) (2.432) is also within normal values, averaging (3.233). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (3.283) is also within normal values, averaging (4.178).
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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of on-line retail shopping services
Industry InternetRetail