Amazon.com Announced Suprisingly Strong and Promising Q2 Results

Amazon.com (AMZN) Q2 2023 revenue unexpectedly rose nearly 11% YoY, beating consensus estimates by around 2%. The company beat expectations for Q3 guidance of $138 billion to $143 billion also underlined strong revenue growth. Advertising services revenue continued to improve, growing 22% YoY, showing potential as a growth driver.

According to the company’s press release, AMZN’s Q2 net sales increased 11% to $134.4 billion, compared with $121.2 billion in Q2 2022. North America segment sales increased 11% YoY to $82.5 billion. International segment sales increased 10% YoY to $29.7 billion. AWS (Amazon Web Services) segment sales increased 12% YoY to $22.1 billion. Net income rose to $6.7 billion in Q2, or $0.65 per diluted share, compared with a net loss of $2.0 billion, or $0.20 per diluted share, in Q2 2022. Free cash flow less financing costs and principal repayments improved to an inflow of $6.7 billion for TTM, compared with an outflow of $26.1 billion for the TTM ended June 30, 2022.

Overall, Q2 2023 results are much better than Q1, and that shows direction in the stock's performance and lay ground for further improvement down the road.