) reported second-quarter earnings that surpassed analyst expectations, but its stock fell 12% on Friday due to weaker-than-anticipated guidance for the third quarter and soft consumer trends.
Revenue came in at $148.0 billion, slightly below the consensus estimate of $148.68 billion but up 10% YoY from $134.4 billion in the same quarter last year. In addition, online sales and third-party seller performance missed consensus projections by 0.3% and 1.2%, respectively. Management noted that although volume remained strong, lower average selling prices offset gains as consumers turned to cheaper items and spent less on high-priced discretionary items.
: “The challenge Amazon’s stock faces here is not the business itself, but rather the lofty expectations in forward estimates — $70B in 2024 OI and $85-90B next year! Possible, of course, but would require an incredible streak of perfection in a steady operating environment for two straight years… nothing in Internet remains unchanged for that long.