We all Amazon as the biggest e-commerce platform in the world and the success they are having right now is all because of the efforts they have put into their platform in the last few decades. Yes, that’s right because Amazon has been in the e-commerce industry when no one even dared to sell products online. Amazon started as a business selling books online but then saw the opportunity and pivoted to selling almost everything online. We are telling you about this because of the latest quarterly report from Amazon where the company has posted record earnings. We just want you to remember the efforts that went into this success.
Talking about the Amazon quarterly earnings report, it is reported that these are “Amazon’s biggest earnings beat since its report for the fourth quarter of 2020” and Amazon CEO Andy Jassy’s cost-cutting efforts are finally turning fruitful. In a statement during the earnings call, Amazon CEO said that “Our AWS growth stabilized as customers started shifting from cost optimization to new workload deployment,” and added that “AI products from AWS are being used by numerous customers, and it named Royal Philips, 3M, Old Mutual and HSBC”. Amazon also reported a “net income of $6.7 billion, or 65 cents a share, after recording a loss of $2 billion, or 20 cents a share”. Also, the loss was mostly due to a markdown in company’s investment in EV car maker Rivian and not due to its own platforms.
As per CNN’s report, “Sales at AWS climbed 12% in the second quarter to $22.1 billion, above the $21.8 billion projected by Wall Street. Still, that marks a deceleration from the prior quarter, when sales expanded 16%, and the slowest growth since 2015, when Amazon began breaking out cloud revenue”. Also, advertising is one of the major growth sectors for Amazon as the company reported “quarterly revenue jumping 22% in the period to $10.7 billion” which is a much higher growth rate compared to both Google and Facebook combined. Also, “AWS accounted for 70% of Amazon’s $7.7 billion in operating profit” which goes to show that AWS remains one of the most profitable sectors for the company despite growth in e-commerce.
