Amazon (NASDAQ:AMZN) stock is on the decline Thursday as its second-quarter earnings and AWS revenue failed to meet expectations, while sales were stronger than projected.
The Pacific Northwest-based tech business reached its midpoint of 2019 with a three-month period that reeled in an adjusted profit of $5.22 per share, about 35 cents per share below the Wall Street outlook, per data compiled by Refinitiv. Revenue tallied up to $63.4 billion, besting the $62.5 billion that analysts predicted, according to Refinitiv.
Amazon’s second-quarter sales total also marked a 20% gain year-over-year, which marks a recovery when compared to the 16.8% revenue growth from the first quarter of 2018. This figure is an extension of the company’s previous announcement to spend $800 million during the period to bolster warehouses and delivery infrastructure.
The business’ desire to shorten delivery times is designed to help customers get their items faster, although this likely means a more strenuous working conditions for employees.
Amazon Web Services (AWS) sales raked in $8.38 billion in revenue, missing the $8.5 billion the Wall Street consensus estimate called for, according to a survey of analysts posted by FactSet. This segment raked in a 37% year-over-year increase in its cloud business, missing the Wall Street forecast–in the first quarter, this growth was 41%.
AMZN stock is down about 2.7% after hours following the online retailer’s quarterly earnings figures. Shares had been dipping roughly 1.4% during regular trading hours in anticipation of these results.