Amazon (AMZN) Q2 earnings report 2024

Amazon reported weaker-than-expected revenue for the second-quarter on Thursday and issued a disappointing forecast for the current period. The shares slid as much as 6% in extended trading.

Here’s how the company did:

• Earnings: $1.26 per share vs. $1.03 per share expected by LSEG
• Revenue: $147.98 billion vs. $148.56 billion expected by LSEG

Wall Street is also looking at these key numbers:

• Amazon Web Services: $26.3 billion vs. $26 billion in revenue, according to StreetAccount
• Advertising: $12.8 billion vs. $13 billion in revenue, according to StreetAccount

Amazon forecast revenue in the current quarter to be between $154 billion and $158.5 billion, representing growth of 8% to 11% compared with the third quarter last year. The mid point of Amazon’s forecast range was $156.25 billion, trailing the average analyst estimate of $158.24 billion, according to LSEG.

The company expects third quarter operating income to be in the range of $11.5 billion to $15 billion, compared with $11.2 billion in the year-ago period. Analysts surveyed by StreetAccount forecast third quarter operating income of $15.3 billion.

Amazon continues to reckon with sluggish growth in its core retail business, as competition heats up, largely from discount sites like Temu and Shein, which allow Chinese merchants to sell cheap items to U.S. consumers. Sales in its online stores segment grew just 5% year over year. Revenue from third-party seller services, which includes commissions, and fulfillment and shipping fees, is accelerating faster, expanding 12% during the quarter.

In cloud, AWS beat estimates, growing 19% from a year earlier, but the unit is expanding at a slower rate than rivals Microsoft and Google. Both of those companies reported cloud growth of 29% in their respective earnings reports, though their numbers include more than just cloud infrastructure.

Amazon’s advertising revenue soared 20% to $12.77 billion during the quarter, falling just shy of estimates. The unit has emerged as one of Amazon’s biggest profit generators, and although the bulk of its ad sales continue to come from sponsored product listings on its online store, the company has added newer offerings and grown its market share in the digital ad segment, where it competes with Meta and Alphabet.

Among online ad companies, Meta had the strongest quarter, reporting revenue growth of 22%. Google’s ad business grew just 11% in the quarter. Snap said on Thursday that revenue increased 16% from a year earlier.

This story is developing. Check back for updates.