Amazon’s cloud service contributed to its operating income of $1.6 billion and advertising sales came in at $2.2 billion. Amazon’s total revenue, including sales from Whole Foods, increased 39% from the previous year.
Amazon’s North America revenue rose by 44% to $32.1 billion and its international sales grew 27% to $14.6 billion. Looking ahead, Amazon expects revenue in the range of $54 billion to $57.5 billion in the third-quarter–just below street estimates of $55.6 billion to $62.2 billion.
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“Amazon reported 2Q profitability well above consensus forecasts, with operating income margin expanding 400bps yoy driven by AWS, advertising, and fulfillment efficiencies,” analyst Heath Terry said in a note to clients Thursday. “Guidance for 3Q operating income was also meaningfully above consensus forecasts. … We continue to believe that we are in the sweet spot between Amazon investment cycles where new fulfillment/data centers are driving accelerating growth while incremental capacity utilization and efficiency is driving margin expansion.”
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