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Amazon Earnings Report Scheduled
Amazon (NASDAQ: AMZN) is set to release its earnings report on Thursday, Oct. 30, after market close. Key metrics to watch will include revenue, margins, and guidance, as even slight negative surprises can lead to significant stock price fluctuations.
Financial Performance Highlights
In the second quarter, Amazon’s net sales reached $167.7 billion, a 13% year-over-year increase. Amazon Web Services (AWS) generated $30.9 billion in revenue, reflecting a 17.5% growth, while advertising revenue grew 23%. Operating income rose to $19.2 billion, with AWS accounting for 53% of total operating income.
Current Valuation and Risks
As of now, Amazon’s shares trade at approximately 34 times earnings and 29 times forward earnings, with a price-to-sales ratio of about 3.6. The company’s trailing twelve-month free cash flow is reported at $18.2 billion, down from $53 billion the previous year, raising concerns about meeting the demand for AWS amid increasing capital expenditures.
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