Amazon Shares Fall on Mixed Q2 Earnings Report

Heavy investment in one-day shipping for Prime members weighed on both Q2 earnings and income guidance for the current quarter.
By Nelson Wang ,

Amazon (AMZN) - Get Report reported mixed second quarter results on Thursday, with revenues beating consensus estimates but earnings and operating income guidance falling short as the company invests in the move to one-day shipping for Prime members.

TheStreet is live blogging Amazon's Q2 earnings report and call. Please join us!

Shares of Amazon were down 2.5% to 1,925.00 in after-hours trading on Thursday.

The e-commerce and cloud giant reported revenue of $63.4 billion and earnings of $5.22, versus expectations of revenue of $62.5 billion and GAAP EPS of $5.56

For the third quarter, Amazon guided for revenue in the range between $66 billion to $70 billion, which at the midpoint was ahead of estimates for $67.28 billion. But its operating income guidance of $2.1 billion to $3.1 billion was well short of consensus estimates of $4.39 billion.

"Customers are responding to Prime's move to one-day delivery -- we've received a lot of positive feedback and seen accelerating sales growth," said Jeff Bezos, Amazon founder and CEO, in a press release. "Free one-day delivery is now available to Prime members on more than ten million items, and we're just getting started.

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