Analysts expect Amazon to show revenue growth of 10.5% in its second-quarter earnings report after the close on Thursday.CREATE FREE ACCOUNT
Amazon CEO, Andy Jassy speaking with CNBC's Jim Cramer on Mad Money in Seattle, WA. on Dec. 6th, 2023.Revenue growth at Amazon is accelerating, driven by its emerging advertising business and demand for cloud services, but expansion remains weak by the company's standards. Analysts are expecting sales growth of 10.5% in the quarter from $134.4 billion, compared with a 13% increase in the first quarter.
Analysts at BofA Securities said they viewed Google's cloud results "as a positive read-thru for AWS," adding that AWS should see tail winds from growth in its backlog revenue, and increasing demand from customers who need compute power to train their AI models.in the company's spending, and has looked for ways to slash costs. Amazon has laid off more than 27,000 employees since late 2022, with the cuts bleeding into 2024.over the past year as a result of the cost cutting.
Amazon's advertising business has emerged as one of its biggest growth and profit engines. Revenue in the segment increased 24% year over year during the first quarter, and is expected to show 22% growth in the second.its streaming peers in including ads in Prime Video content. Prime Video users are now automatically shown ads, unless they pay an additional $2.99 a month to unlock the ad-free tier.
The ad business could haul in as much as $150 billion in sales before the end of the decade, up from $47 billion in annual sales last year, the Loop analysts wrote. They have a buy rating on Amazon's stock.as the third rights partner in the NBA's new 11-year TV deal. It's the latest example of Amazon's push into live sports and is likely to boost its advertising business and Prime Video platform, which Amazon uses to hook new Prime subscribers and drive purchases on its store.