Amazon is preparing to release its second-quarter earnings, with analysts estimating earnings per share at $1.82 and revenue at $196.47 billion. Key revenue figures include expectations of $40.54 billion from Amazon Web Services (AWS) and $19.43 billion from advertising.
Investors are closely monitoring Amazon's capital expenditures, which reached $44.2 billion in the first quarter, a 77% increase year-over-year, and are projected to rise to $49.3 billion in the second quarter. Analysts from Morgan Stanley anticipate that Amazon's capex could reach $218 billion this year, with continued growth expected through 2028.
The cloud segment remains a focal point, especially after strong performances from competitors like Google Cloud and Microsoft Azure. AWS revenue is expected to grow by about 31% year-over-year, indicating a robust demand for cloud services. Additionally, Amazon has made significant partnerships in the AI space, enhancing its cloud offerings.
The recent Prime Day event, held earlier than usual, showed a 9.3% increase in U.S. online spending, although some analysts noted a potential slowdown in retail sales growth for the third quarter. Overall, Amazon's stock has seen a modest increase of about 3% year-to-date, contrasting with the S&P 500's 8% rise