Amazon: sustained growth, but not record-breaking

Amazon: sustained growth, but not record-breaking

When it comes to Big Companies and quarterly investors always expect numbers that show strong increases in terms of profits and turnover, especially if we talk about giants like Amazon. But this does not always happen, so it can happen that substantially good results fail to arouse enthusiasm in the markets.

According to the figures presented by the group of Jeff Bezos, during the last quarter the revenues would have been equal to 70 billion dollars thanks to a growth of 24% compared to the same period last year. As for the turnover of AWS (Amazon Web Services), the Cloud division would have forfeited about 9 billion dollars.

The news regarding the net profit would have been less exciting, however: "just" 2.1 billion dollars, in practice 26 points less than in the same quarter of 2018. The reasons for this drop would be justifiable taking into account the important investments made to improve the services related to e-commerce and the aforementioned Cloud.

To the above we add the forecasts for the last 3 months of 2019, the most important of the year because they coincide with the Christmas shopping period. The next quarter should close with a drop both in terms of turnover (between 80 and 86.5 billion against previous estimates equal to 87.4) and profits (between 1.2 and 2.9 billion instead of 4.2).

The most encouraging news would come from AWS whose ability to generate revenues would be 35% growth on an annual basis, an increase that would not have been sufficient to reassure shareholders (as reported by -9% in Wall Street after hours) as the growth recorded in the previous four-year period was much more sustained.

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