Amazon Q2 revenue falls short of estimates, Q3 forecasts disappoint

Andy Jassy, CEO Amazon Web Services, speaks at the WSJD Live conference in Laguna Beach, California, U.S., October 25, 2016. REUTERS/Mike Blake

Andy Jassy, then-CEO Amazon Web Services, speaks at the WSJD Live conference in Laguna Beach, California, U.S., October 25, 2016. REUTERS/Mike Blake

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Tech juggernaut Amazon (AMZN) reported its Q2 2021 earnings after the closing bell on Thursday, missing expectations on revenue and falling short on Q3 guidance.

Here’s are the most important numbers from Amazon’s report compared to analysts’ expectations as compiled by Bloomberg.

  • Revenue: $113.08 billion versus $115.06 billion expected

  • EPS: $15.12 versus $12.22 expected

  • AWS revenue: $14.81 billion versus $14.18 billion expected

Amazon’s stock was off as much as 5% following the earnings announcement.

Amazon’s earnings come after Apple (AAPL), Microsoft (MSFT), Google (GOOG, GOOGL), and Facebook (FB) announced their own quarterly reports, with each company blowing past expectations for the prior quarter.

The ecommerce giant, meanwhile, has been on a tear in recent quarters thanks to the pandemic’s impact on its online sales operations. With so many people spending time indoors and relying on delivery services, Amazon became a go-to for millions of Americans.

The company booked its first $100 billion quarter in Q4 2020 and also announced that it now has more than 200 million Prime subscribers.

But Amazon’s Q3 forecasts fell short of analysts’ expectations, with the company saying it will bring in between $106 billion to $112 billion. Wall Street was looking for $118.7 billion. Analysts had expressed concerns about Amazon’s Q3 guidance ahead of the Q2 earnings announcement, as consumers are able to go back out into the world again, and don’t have to rely as heavily on online shopping.

Amazon is also facing tough regulatory headwinds, including an ongoing Federal Trade Commission investigation into its alleged use of third-party seller data to produce and sell its own Amazon Basics-branded goods.

The FTC is also reviewing Amazon’s planned purchase of legendary Hollywood studio MGM for $8.45 billion to bolster its video offerings and better compete with the likes of Netflix and Disney+.

The FTC may become a bigger thorn in Amazon’s side thanks to the commission’s new chair Lina Khan. An ardent critic of Amazon, Khan, a former antitrust professor at Columbia Law School, came to fame after publishing an article for the Yale Law Journal titled “Amazon’s Antitrust Paradox,” which calls for changes in the current antitrust regulatory framework.

Amazon is already calling on Khan to recuse herself from the commission’s antitrust investigations and the probe into its acquisition of MGM.

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