On August 1, Amazon (AMZN) will release its results for the second quarter of 2024. The company projects revenues of $144 billion to $149 billion, or a 7–11% increase over the previous year.
Amazon's Success: Cloud Business
The key to Amazon's success is its stronghold in the cloud and e-commerce sectors, which are supported by the company's developing generative AI capabilities. The company has demonstrated strong performance in the previous four quarters, as evidenced by its impressive revenue history and unanticipated events. It includes a 36.14% surprise in the most recent reported period and an average surprise of 48.17%.
One of the main reasons for Amazon's expansion has been its extensive Prime membership, which offers quick delivery options like Prime Free One-Day and Same-Day Delivery. Positive contributions have also come from a stronger distribution system and the expansion of grocery services. Amazon's financial performance has probably benefited from its expanding Prime membership base and worldwide e-commerce operations. Another benefit improving the company's prospects is the Prime RxPass, which provides prescription drugs for a fixed monthly fee of $5.
Amazon's Revenue: What To Expect?
Sales at Amazon's physical stores are anticipated to have increased; the general estimate of $5.25 billion for the second quarter of this year indicates an upsurge of 4.5% from the previous year. This expansion has probably been aided by the company's retail presence, which includes Whole Foods, Amazon Fresh, and Amazon Go retailers. It's also anticipated that breakthroughs such as the Amazon Dash Cart, which uses cutting-edge computer vision technology to improve the shopping experience, will boost in-store sales.
The company has benefited greatly from its partnerships with third-party sellers, whose sales are expected to increase to $36.3 billion, or 12.3%, this year. Amazon Music, which is ad-free and consists of Prime membership, has added to Prime engagement in the streaming space. Prime Video's growing original content and general portfolio may have spurred Prime engagement.
