Amazon Shares Slide As 2Q Earnings Show Big Miss On Bottom Line
- Amazon shares slid after 2Q EPS miss
- Costs for the online retailer likely increased
- Apple earnings to be released August 1st
Amazon Inc. shares slid in after-hours trading as the e-commerce giant announced the financial results for its second quarter earnings, widely missing Wall Street expectations. Shares dropped by as much as 4.3 percent after the online retailer reported an earnings per share (EPS) – a measure of a company’s profitability – of $0.40 versus analysts’ predictions for $1.42.
While Amazon reported revenues of $37.95 billion, coming in slightly above the $37.18 billion expectation, the massive EPS miss held the spotlight. These financial results indicate that costs for the company have likely increased, meaning the company has been less efficient in using investors capital to generate income. Being a part of FAANG, – Facebook, Apple, Amazon, Netflix and Alphabet’s Google – the company and its collective represent a hearty component of the S&P 500 index, the company’s financial results are closely watched by the market.
As the FAANG collective has guided the outperforming technology sector to returns well above the benchmark S&P 500 index, monitoring the performance of these companies may prove important for gauging the bearings for the entire market. With Facebook, Netflix and Google already having reported strong results, eyes will now surely turn to Apple, whose numbers are due August 1st.
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