Amazon releases first quarterly report under new CEO Andy Jassy

Amazon barely missed on its revenue estimate and generated near-record-setting profit during Q2, yet the stock is still taking a beating in early morning trading largely due to Amazon’s third quarter guidance. But that could all change should the pandemic ramp back up as some believe could happen.

Amazon has released its first quarterly earnings report with newly minted CEO Andy Jassy at the helm, who took over for founder Jeff Bezos earlier this month.

In the three-month period ending June 30 (which included Prime Day this year), Amazon generated $113.1 billion in total net sales, representing a 27 percent increase quarter over quarter. That’s a tad shy of Refinitiv analysts’ average estimate of $115 billion, but profit checked in at a very healthy $7.8 billion – Amazon second largest quarterly profit ever. In the year-ago quarter, Amazon generated just $5.2 billion in net income.

Looking ahead, Amazon expects net sales to check in between $106 billion and $112 billion.

Share value in Amazon is down more than seven percent in AM trading, with a single share currently going for $3,599.92.

Edward Jones analyst Brian Yarbrough told Reuters that it was not feasible for Amazon to maintain its rapid growth. “Obviously the pandemic helped them, but they’re not going to be able to grow that rapidly on top of those numbers.”

“It’s still phenomenal growth when you think of the sheer size of the business,” Yarbrough added.

Slowing growth isn’t the only issue Amazon has to contend with. An ongoing labor shortage has prompted the ecommerce giant to go on a hiring spree, offering an average of $17 per hour plus signing bonuses to attract workers. Heading into the holiday season, Amazon’s labor needs are only going to increase.