Amazon Sees Record Revenues Growth In Q2

Bumper EPS Beat

Shares in US tech giant Amazon are trading 0.60% higher pre-market on Friday following a bumper Q2 earnings report yesterday.

Amazon reported earnings per share of $10.30. This was a huge upside surprise to the $1.48 EPS expected. Revenues were reported at $88.9 billion, marking a 40% jump on the same quarter last year, with a net income of $5.2 billion.

Regionally, Amazon reported a 43% jump in North American sales which rose to $55.4 billion. International sales were higher by 38%, rising to $22.7 billion. Q2 revenues at this level were well above the $81.56 figure the market was looking for.

Highly Unusual Quarter

Commenting on the results, Amazon CEO Jeff Bezos said:

“This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe. As expected, we spent over $4 billion on incremental COVID-19-related costs in the quarter to help keep employees safe and deliver products to customers in this time of high demand — purchasing personal protective equipment, increasing cleaning of our facilities, following new safety process paths, adding new backup family care benefits, and paying a special thank you bonus of over $500 million to front-line employees and delivery partners.”

The impact of the COVID-19 crisis worked favorably for Amazon which saw a large spike in online sales and deliveries. Amazon reported a 160% increase in delivery capacity in a bid to deal with extra demand created as a result of the lockdowns.

Plans To Increase COVID-19 Related Spending

Amazon played a key role in the fight against COVID-19. The company cited donations of more than $10 million in PPE, including 4.4 million masks. They noted that it wanted to be seen spending money not just making money.

Looking ahead, the company has issued Q3 revenue guidance of $87 billion – $93 billion, above the $86 billion guidance analysts forecasted.  The company also notes that it plans on spending more than $2 billion in Q2 on additional COVID-19 measures. This will include the procurement of PPE equipment and an increase in the deep cleaning of facilities, along with increasing employee wages.

Amazon Holds Test of Support


Amazon shares have reversed from recent all-time highs around 3332.07. But, they found support at a retest of the broken trend line at 2883.33.

While this level holds, focus is on continued upside. However, if price breaks back below this level, then the 2793.58 region will be the next support level to watch.

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About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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