(BFM Stock Exchange) – The e -commerce group delivered growth of 17.5% in its Cloud activity in the second quarter when the market awaited a figure closer to 20%. The action loses more than 6.6% at Wall Street.
If the “Seven Magnificent” of Wall Street have successfully completed the semi -annual results season, this is clearly not the case with Amazon. The e-commerce group plunges on the New York Stock Exchange this Friday, August 1, falling 6% at the start of the session after delivering its results in the second quarter.
Over the period from April to the end of June, Amazon released revenues of $ 167.7 billion up 13% while its profit per share increased from $ 1.26 to the second quarter of 2024 to 1.68 dollars a year later.
Amazon has exceeded expectations. The consensus (the average forecast of analysts) visible alpha, was wedged at 162.2 billion dollars for income and $ 1.33 for profit per share.
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AWS does not support the comparison
However, the market continues above all to scrutinize the performance of AWS (Amazon Web Services), the Amazon’s dematerialized computer service branch. However, over the quarter, growth was established at 17.5%, a figure, certainly, slightly higher than the forecasts of analysts. But not as high as investors would have liked investors. Gene Munster, manager at Deepwater AM, estimates that the market hoped for a figure closer to 20%.
Especially since, as Bank of America, the Cloud Divisions of Microsoft and Alphabet, Azure and Google Cloud Platform points out, have largely exceeded expectations during this season of results, and signed respective growths of 39% and 32%. The comparison is therefore quite difficult.
“We believe that the feeling was optimistic as the publication approaches, given the encouraging performance and the comments of its peers in recent weeks,” said Dan Ives, analyst at Wedbush.
In addition, the margin of this division has contracted. The operating profit reached $ 10.16 billion, for a margin of 32.9% against 35.5% a year earlier.
“AWS was clearly in the fire of the ramp, but did not shine as much as expected,” Matt Britzman, senior action analyst at Hargreaves Lansdown told Reuters. “While Microsoft and Alphabet have already displayed a strong dynamic of growth in the cloud, AWS was not the master stroke that many hoped to see,” he added.
“AWS lost ground against Azure in the second quarter, but the Cloud growth can be irregular, and although WS does not yet take advantage of the use of chatgpt, the wider adoption of generic AI by companies remains a growth catalyst”, judge for its Bank of America.
Timore perspectives
In addition, society’s forecasts for the third quarter prove to be “mixed” considers Dan Ives.
Amazon expects to generate income between 174 billion and $ 179.5 billion, reflecting an increase of 10% and 13%. The operating profit is expected between $ 15.5 billion and $ 20.5 billion. Visible alpha consensus was a dollars and $ 19.5 billion respectively $ 173.13 billion.
“We believe that management forecasts are somewhat cautious, because the company has exceeded the most optimistic forecasts in terms of turnover and operating profit for several consecutive quarters,” writes Dan Ives.
The analyst believes, however, that “concerns about medium -term trajectory of the growth rate and the margin of AWS could continue to weigh on action, investors increasingly considering AWS as a delay in the field of AI”.
Julien Marion – © 2025 BFM Bourse
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