What’s Surprising about Amazon’s Q2 Earnings?

Howdy !

Are you surprised of Amazon’s second quarter results and Jeff Bezos’s net worth sliding back down, hence making Bill Gates the world’s richest man once again?

If you ask us, these are merely a result of the retail giant’s uninterrupted investment cycle.

Amazon can choose to make a profit or an investment; it’s monumentally focused on the latter and thus explaining its reported net income of $197 million for this quarter.

Although that’s a 77% decrease from $857 million last year, there’s no reason to panic as Amazon has been working and spending on things which ensure not only continuous growth but power.

The company has been investing a lot of money in video content, such as original TV series and movies, to drive more Prime subscriptions and subsequently strengthen its marketplace.

Speaking of which, Amazon’s marketplace sales totalled $38 billion, a 25% increase from a year ago.

A huge chunk of that number came from the third annual Amazon Prime Day which helped small businesses sell more than 40 million items.

And just like last year, Amazon Web Services (AWS) was the main driver of the company’s growth, posting a total revenue of $4.1 billion and an operating income of $916 million.

As for Jeff Bezos’s net worth which reached $91 billion before Amazon’s stock price dropped by 2%, let’s just say it has nowhere to go but back up.

That’s a no-brainer as we all know that the stock market is volatile, so what’s currently down will eventually go up and vice versa.

Amazon’s busy headquarters

After its recent acquisition of Whole Foods and Souq.com, and its successful launch in India and Singapore, Amazon is working on expanding its fulfilment centres and logistics services.

That entails a lot of money, but it seems that the retail giant is too busy thinking about its long-term goals to even bother about its Q3 earnings.

“Third quarter certainly has a healthy amount of investments and we’ll continue to grow those areas,” said Brian Olsavsky, chief financial officer at Amazon.

If you still can’t help but worry about Amazon’s Q2 earnings, check this out where I explain Amazon’s earnings report in detail and how Bezos will be the world’s first trillionaire.

Let us know your thought on this in the comments below.

 

To your continued success,

Dave & Matt

 

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