Amazon’s growth is increasing exponentially as the company adapts to the new economic environment.
Grab it fast. Net sales rose to $121.2 billion in the second quarter, or 7% – the same pace as the first three months of the year, the company reported on Thursday.
- The company saw a net loss of $2 billion for the second consecutive quarter.
Context: The Digital and Logistics Congress said the results were better than feared amid heavy investment in logistics and online, online shopping fever waning and inflation on the rise.
- CEO Andy Jaci recently marked his first year as Jeff Bezos’ successor, and he’s been under pressure to show investors he can restore strength to the company’s core retail business, CNBC reported.
Snapshot: Online sales, particularly in the second quarter, fell 4 percent year over year to $51 billion from $53 billion.
- Physical stores, on the other hand, grew 12 percent year-over-year to $4.7 billion from $4.2 billion.
The bubble of our thoughtsWith online sales on the decline, Amazon needs to master the art of brick-and-mortar to set the stage for its next phase of growth.
- Physical stores not only provide a new growth channel, but also boost online sales, as consumers choose to float between the two.
The big picture: Asked if Walmart is seeing a slowdown in consumer spending, CFO Brian Olsavsky said the company “didn’t notice a downward trend in June.”
What to see: Bright spots at Amazon remain AWS’s business and advertising divisions, which grew 33% and 18% year over year, beating analysts’ estimates.
- Unlike social media competitors in the digital ad space like Twitter and Snap, Amazon continued to grow its ad business meaningfully, bringing in $8.8 billion last quarter.
- Amazon shares rose nearly 13 percent after hours.
