Amazon's Q2 Quarter Boom: Everything You Need To Know

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Summary

  • Amazon is a titan of the ecommerce and Cloud industry.
  • The company recently beat Revenue Growth estimates for the 2nd quarter, whiles its profitability has been butchered by rising input costs.
  • AWS is the company's growth engine and reported blistering revenue growth of 33% and profit growth of 36% year-over-year.
  • The stock price was up in premarket trading and is undervalued intrinsically.
  • Amazon has many competitive advantages, including its vast logistics network, technology, and "Scale Economics shared" Model.

Aerial view of Amazon Prime distribution warehouse and fulfilment centre

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Amazon.com, Inc. (NASDAQ:AMZN) recently announced its financial results for the second quarter of 2022. Despite racking up a huge net loss of $2 billion, the company actually beat revenue expectations on strong AWS growth, and the stock

Chart
Data by YCharts

Chart
Data by YCharts

Amazon Income statement

Amazon ( Income statement)

Amazon stock losses

Amazon stock losses (Income statement (2021 - Left Column), (2022 - Right Column) )

Cloud Providers

Cloud Providers (Statista)

AWS Sales

AWS Sales (Q2,22 earnings)

Amazon Stock Valuation 1

Amazon Stock Valuation 1 (created by author Ben at Motivation 2 Invest)

Amazon Stock Valuation

Amazon Stock Valuation (created by author Ben at Motivation 2 Invest)

Chart
Data by YCharts

Scaled Economics Shared

Scaled Economics Shared (created by author Ben at Motivation 2 Invest)

This article was written by

Deep Tech Insights profile picture
4.89K Followers
Senior Investment Analyst for Hedge Funds. Interviewed Hedge Fund Managers and CEO's. Investment Strategy: Focus on Deep Dive Valuation, G.A.R.P (Growth at a Reasonable Price). Masters in Equity Valuation, 755+ Companies Analysed.

Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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