Amazon sales grow by only 27 percent
The figures of our portfolio value of Amazon for the second quarter brought rising profits, but only moderate growth in online retail, which caused the share to fall by about 7 percent.
After sales in the retail division grew particularly strongly in the past two quarters due to the Corona pandemic, they were only up 13 percent this quarter. One possible reason may be that the Corona special effect from the previous year was not repeated. Nevertheless, stock market participants had expected greater results.
The business model is currently stable. The platform services, especially online advertising, and Amazon Web Services continue to grow. The advertising division "Other", which, however, includes other items, increased by as much as 87 percent to 7.9 billion dollars. Services for third-party merchants brought in $25.1 billion in revenue. Overall, these services, which make the platform model so attractive, already account for half of total sales, yet they are growing much faster and will therefore soon be Amazon's main business.
The shift from retail to platform business is particularly evident in the development of profits. In contrast to retail, these models generate high margins, which has caused Amazon's profits to rise noticeably for about three years.
Despite the setback on the stock market, we remain invested in Amazon shares.
The author and/or related persons or companies may own the shares mentioned herein or are already invested in these shares, e.g. via an investment vehicle. This article is for general information purposes only and constitutes a free expression of opinion and not investment advice. Please also note the detailed legal information.
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