Amazon.com founder and CEO Jeff Bezos
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Amazon is reporting its second-quarter results on Thursday after the bell.
Wall Street expects Amazon’s revenue growth to rebound from a four-year low in the first-quarter, but the growing investments into the business are likely going to cut into its profit margins.
Here’s what Wall Street is expecting for the quarter:
- EPS: $5.57, according to analysts surveyed by Refinitiv, vs. $5.07 last year
- Revenue: $62.5 billion, according to Refinitiv, vs. $52.9 billion a year ago
- AWS: $8.5 billion, according to analysts surveyed by FactSet, vs. $6.1 billion last year
Amazon spent $800 million in the second quarter improving warehouses and delivery infrastructure as part of a plan to make one-day shipping the standard for Prime members. Analysts predict that shorter delivery times will lead to more frequent purchases and higher revenue.
Meanwhile, the company is facing heightened regulatory scrutiny, with antitrust officials in the U.S. and EU launching investigations into the company’s business practices.
Amazon shares have climbed 32% this year, outpacing the 20% gain for the S&P 500.
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