Amazon Reports Strong Q2 Earnings
On July 31, 2023, Amazon (NASDAQ: AMZN) announced its second quarter earnings for the period ending June 30. The company’s revenue reached $167.7 billion, exceeding analyst expectations, while diluted earnings per share stood at $1.68, also surpassing estimates.
In the quarter, Amazon’s capital expenditures soared to $31.4 billion, indicating a significant focus on expanding its artificial intelligence capabilities. Operating income increased by 31% to $19.2 billion, though management’s forecast for third-quarter operating income at $18 billion raised concerns among investors, resulting in a negative market reaction. Despite this, shares are trading at a price-to-earnings ratio of 33.9, suggesting that the stock remains reasonably valued.
