After market drop of nearly 8%! Amazon Q3 guidance: 'Worry to death': Can AI burn money like this and earn it back on schedule?
夫星特九
发表于 2024-8-2 10:40:16
1276
0
0
Caixin News Agency, August 2nd (Editor Huang Junzhi) After Thursday's trading hours Eastern Time, Amazon released a second quarter financial report that was "not entirely arbitrary". Despite exceeding expectations in profits and cloud computing sales for the quarter, the company's performance guidance for the next quarter has disappointed investors and raised doubts about whether the massive investment in AI can truly generate corresponding returns.
Affected by this financial report, Amazon's stock price fell 7.69% in after hours trading. However, the stock has still risen by over 22% so far this year.
According to the financial report, Amazon's net sales in the second quarter were $147.98 billion, lower than analysts' expectations of $148.78 billion; Operating profit of 14.67 billion US dollars, higher than analysts' expectations of 13.59 billion US dollars; Earnings per share of $1.26, analysts expect $1.04; The operating profit margin was 9.9%, a year-on-year increase of 5.7 percentage points, and analysts expected 9.13%.
In terms of business segmentation, the strong performance of cloud computing business was offset by the weakness of Amazon's main e-commerce business. The CEO of the company, Andy Jassy, has been cutting costs and focusing on the profitability of the company's main online retail business. Chief Financial Officer Brian Olsavsky told reporters on a conference call that consumers "continue to be cautious and reduce spending
He added that products with lower prices sell well. Jassy also agrees with this. Not only Amazon, but also Oreo manufacturers Mondelez and Pepsi have recently made similar statements.
Amazon's online retail business is facing fierce competition from low-cost retailers such as Temu and Shein, who sell a variety of products directly from China at relatively low prices.
Specifically, Amazon's e-commerce net sales in the second quarter were $55.39 billion, a year-on-year increase of 4.6%, lower than analysts' expectations of $55.55 billion; AWS business net sales were $26.28 billion, a year-on-year increase of 18.7%, and analysts expect $25.98 billion,; The net sales of advertising business were 12.77 billion US dollars, a year-on-year increase of 19.5%, and analysts expected 13 billion US dollars.
Performance guidance
Amazon expects net sales in the third quarter to be between $154 billion and $158.5 billion, with analysts expecting $158.43 billion; The operating profit was between $11.5 billion and $15 billion, both of which were lower than analysts' expectations of $15.66 billion.
AI investment
As is well known, since the AI craze swept the world, tech giants have invested huge amounts of money in this field one after another, and Amazon is no exception. In its latest financial report, Amazon stated that it will "increase its efforts" and once referred to AI services as a business representing "billions of dollars in revenue conversion rates".
Olsavsky stated that in the first half of this year, Amazon spent $35 billion on capital expenditures such as data centers in its network services cloud division, and will increase this number in the second half of the year. He said, "We see strong demand for both generative and non generative AI workloads
However, some analysts commented based on the above performance guidance that the lower than expected profit guidance indicates that Amazon has invested more funds than expected in the competition to meet the demand for AI services.
Moreover, investors are becoming impatient with tech giants constantly burning money but rarely seeing returns.
Microsoft announced on Tuesday that its Azure cloud computing business growth has slowed down and stated that it expects to continue investing heavily in data centers. The next day, Meta also emphasized that capital expenditures will increase significantly in 2025, with infrastructure costs being an important driving factor, which will continue to support AI research and product development efforts.
Last week, Google's parent company Alphabet Inc. announced a significant increase in costs, which surprised Wall Street and overshadowed better than expected quarterly sales. CEO Pichai emphasized that for Alphabet, the risk of underinvestment in the AI field far outweighs the risk of overinvestment.
DA Davidson analyst Gil Luria said, "Investors are starting to adapt to the more stable profitability of the retail business, but Amazon has been investing heavily at the expense of short-term profit margins, and it seems they are planning to invest heavily for the rest of this year. The good news is that as AWS's growth accelerates to 19%, returns seem to have arrived
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
猜你喜欢
- Amazon is developing 'black technology': equipping delivery drivers with 'smart navigation glasses'
- Depth | Amazon develops smart glasses to help drivers improve efficiency and shorten delivery times
- Amazon may shut down its free streaming service Freevee
- Amazon launches new low-priced product segment, Amazon Haul
- Is it possible for Amazon's "Black Friday" and "Cyber Monday" to reach a new high in online shopping scale?
- Global market: The three major US stock indices have fluctuated, with most large tech stocks rising and Amazon's stock price hitting a historic high
- Amazon is reportedly in discussions with companies such as Uber and Ticketmaster to collaborate on upgrading Alexa
- 아마존은 우버, 티켓마스터 등과 알렉사 업그레이드를 위한 협력을 논의 중인 것으로 알려졌다
- Amazon will release a series of strategic priorities for the year 2025
- Amazon launches' Black Friday 'for overseas purchases
-
知名做空机构香橼研究(Citron Research)周四(11月21日)在社交媒体平台X上发布消息称,该公司已决定做空“比特币大户”微策略(Microstrategy)这家公司,并认为该公司已经将自己变身成为一家比特币投资基金 ...
- caffycat
- 昨天 11:18
- 支持
- 反对
- 回复
- 收藏
-
每经AI快讯,11月20日,文远知行宣布旗下自动驾驶环卫车S6与无人扫路机S1分别在新加坡滨海湾海岸大道与滨海艺术中心正式投入运营。据介绍,这是新加坡首个商业化运营的自动驾驶环卫项目。 ...
- star8699
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
上证报中国证券网讯(记者王子霖)11月20日,斗鱼发布2024年第三季度未经审计的财务报告。本季度斗鱼依托丰富的游戏内容生态,充分发挥主播资源和新业务潜力,持续为用户提供高质量的直播内容及游戏服务,进一步 ...
- goodfriendboy
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
人民网北京11月22日电 (记者栗翘楚、任妍)2024广州车展,在新能源汽车占据“半壁江山”的同时,正加速向智能网联新能源汽车全面过渡,随着“端到端”成为新宠,智能驾驶解决方案成为本届广州车展各大车企竞 ...
- 3233340
- 昨天 17:06
- 支持
- 反对
- 回复
- 收藏