As stores reopen and personal purchases increase, the growth in demand for Amazon shopping has finally begun to wane – no a lot, be clear, but just enough to frustrate investors.
In April-June, Amazon saw sales of products and services at $ 113.1 billion, up 27 percent from a year earlier. That’s a huge amount of money, but investors were hoping for a little more, about $ 115 billion, and Amazon shares have slipped since the figures came out. 202 second quarter earnings report this afternoon.
But one investor was happy to see it, and it helps explain the company’s recent CEO mix. The Amazon Web Services business had revenue of $ 14.8 billion, up 37 percent from a year earlier. This significant increase overtook the previous Q2 for the entire Amazon and AWS, when it grew by 29 percent. It was the only point of light for the business Andy Jassy, Amazon’s new CEO, which is worth mentioning in its comments on the publication, saying that “we have seen AWS growth accelerate.”
Jassy had been in charge of AWS Until July 5, when he was promoted to CEO to replace Jeff Bezos, who left to leave eat skittle in space. The cloud division has always been the Amazon power plant, which accounts for the largest share of the company’s operating income. While its growth had slowed during the pandemic, the division now seems to be accelerating, as Jassy said.
As for the rest of Amazon, investor concern about the company, which only earned $ 113.1 billion in three months, may be due to two places. First, Amazon grew faster last year – revenue growth this time was 40 percent this time in 2020 compared to 27 percent this year – although it can be remembered that a certain global pandemic had risen in those months by encouraging growth in online shopping. But second, other technical giants have fared pretty well this quarter and beat investor expectations, which makes Amazon weird.
The main day was also held in June this year, which probably helped these volumes. According to Amazon, 250 million products were purchased, more than any previous major day.
There have been signs that the growth of e-commerce as a whole is starting to slow down. Growth continues to grow, but that means Amazon and its investors can’t expect to see as huge gains as in 2020 as much of the world tried to avoid indoor shopping.
Jassy hasn’t provided any clues as to how he’s running the company differently than Bezos, but today’s numbers help show why he’s in charge. AWS is still a bright spot, and its leader now has the rest of Amazon to take care of.