Amazon's stock experienced a strong surge on Friday following its second-quarter results, which greatly exceeded expectations. Analysts praised the stabilization of AWS growth, better retail margins, and the measures the company is taking to reduce costs.'s Tuna AmobiShares of Amazon surged 8% on Friday after the e-retailer reported blowout second-quarter earnings and issued upbeat guidance. Amazon easily beat on the top line, posting earnings of 65 cents per share versus the Refinitiv consensus estimate of 35 cents a share. This was the company's biggest profit beat since 2020, largely attributed to CEO Andy Jassy's aggressive cost-cutting efforts. Revenue jumped 11% year over year to $134.4 billion, surpassing the anticipated $131.5 billion.
In response to the report, Amazon's guidance for the third quarter forecast sales between $138 billion and $143 billion, surpassing estimates of $138.25 billion. Analysts praised the strong results for Amazon Web Services and improved retail margins. To further bolster the retail business, Amazon has shifted to a regional model to trim expenses, instead of a national "hub-and-spoke" structure, enabling faster deliveries at a lower cost. Morgan Stanley analysts have referred to the shift as the "next retail flywheel" for the company. Overwhelmed by the results, Bernstein analysts stated, “Was this a sneak peek of a Jassy-led growth era? Or was 2Q23 a peak unlikely to repeat? We'll take the former thank you very much.”
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