Amazon Q2 Earnings Takeaways: AWS Expansion, 20 Emmy Noms, Softer Guidance

Shares of Amazon.com Inc AMZN are trading lower after reporting revenue and guiance lower than Street estimates.

What Happened: Second quarter revenue of $113.1 billion was up 27% year-over-year, missing consensus estimates of $115.1 billion.

The company reported earnings per share of $15.12, beating estimates of $12.22.

“Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items,” said CEO Andy Jassy.

Amazon Prime members celebrated Prime Day with over 250 million items sold across 20 countries. At the end of the second quarter, Amazon Prime was available in 22 countries.

Prime Video landed an expanded NFL deal for Thursday Night Football and secured 20 Emmy Nominations during the second quarter.

Amazon shared a short update on its games division with a closed preview of the multiplayer online PC game “New World” recently streamed to strong viewership on Twitch.

Related Link: Amazon Announces 200M Prime Members, AWS $54B Annual Run Rate Business

AWS had sales of $14.8 billion in the second quarter, up from $10.8 billion in the second quarter of 2020. The company reports it saw significant customer momentum for AWS in the quarter including wins with Ferrari and the National Hockey League.

“We’ve seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud,” Jassy said.

The company also highlighted its investments in employee safety, small business empowerment, supporting communities and protecting the planet.

What’s Next: Amazon is projecting third-quarter revenue to come in a range of $106 billion to $112 billion. The total would be a 10% to 16% year-over-year increase. The Street is forecasting third-quarter revenue of $118.6 billion.

AMZN Price Action: Shares of Amazon closed down 0.8% in Thursday’s session. Shares are down 5% to $3,404.55 in after-hours trading.