Amazon.com (AMZN) stock is plummeting Friday after the world's largest e-commerce company reported mixed earnings results for its second quarter and issued a third-quarter outlook that came up short of analysts' estimates.
In the three months ended June 30, Amazon's revenue increased 10% year-over-year to $148 billion, driven by a 19% year-over-year rise in its Amazon Web Services (AWS) cloud segment to $26.3 billion. The company said earnings per share (EPS) nearly doubled from the year-ago period to $1.26.
"We're continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth," Amazon CEO Andy Jassy said in a statement.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
While Amazon's results for AWS revenue and earnings per share came in above the $26 billion and $1.03 analysts were expecting, respectively, total revenue fell short of the $148.6 billion Wall Street forecast, according to CNBC.
For the third quarter, Amazon said it anticipates revenue in the range of $154 billion to $158.5 billion, representing growth of 8% to 11% from the same period a year ago. However, the midpoint of this range, $156.25 billion, is lower than analysts' estimates for $158.24 billion in sales.
Is Amazon stock a buy, sell or hold?
Wall Street is bullish on the Dow Jones stock, and for good reason. Heading into today's session, Amazon was up 21% for the year to date, building on its impressive 20-year return.
According to S&P Global Market Intelligence, the average analyst target price for AMZN stock is $221.92, representing implied upside of nearly 40% to current levels. Additionally, the consensus recommendation is Strong Buy.
Financial services firm Wedbush is one of the more bullish outfits on AMZN stock with an Outperform rating (equivalent to a Buy) and $225 price target.
"Despite a mixed backdrop near-term, we would be buyers of the pullback in Amazon shares following Q2 results," said Wedbush analyst Scott Devitt in a note Friday morning. "Our long-term thesis is unchanged, Amazon is positioned to deliver sustainable operating margin growth over a multi-year period that exceeds mega-cap peers including Meta (Outperform-rated) and Alphabet (Outperform-rated)."
Devitt adds that “Amazon remains our Best Idea."
Related Content
-
Customer Services are Strained at the SSA, You Should Plan Around These Federal HolidaysIf you have a question or need information from a federal agency, check the federal holiday schedule to make sure you get your business done before they close.
-
Stock Market Today: No 'Powell Put'? No ProblemInvestors, traders and speculators look beyond both another Trump post and more signs of slowing economic activity.
-
Stock Market Today: No 'Powell Put'? No Problem
Investors, traders and speculators look beyond both another Trump post and more signs of slowing economic activity.
-
First 100 Days: Trump's Impact on Your FinancesHere are some opportunities to consider regarding investing, interest rates and tax cuts as the financial landscape shifts under the new administration.
-
What Would Happen if You Put Your Tax Refund in an IRA?Not only could you get a tax break, but the compounding effect over 35 years could turn the average refund into nearly $14,000.
-
Children Can't Afford to Fly the Nest? Here's How to HelpThe high cost of living means more adult children are staying at home. Here are four ways to help financially so they can eventually spread their wings.
-
How Much Will Car Prices Go Up With Tariffs?Tariffs could drive car prices up even higher, for new and used cars, as well as for American brands.
-
What Is the Buffett Indicator?"It is better to be roughly right than precisely wrong," writes Carveth Read in "Logic: Deductive and Inductive." That's the premise of the Buffett Indicator.
-
Stock Market Today: Dow Drops 699 Points After Powell SpeechFed Chair Powell warned of a slowing economy and higher inflation but said the central bank isn't ready to cut rates just yet.
-
I Have $20,000 to Invest. What Should I Do?We asked a financial expert to weigh in on where to invest $20,000.
