Yesterday, Amazon reported its second-quarter 2022 earnings. Financial report disclosure: Q2 achieved revenue of US$ 121.234 billion, a year-on-year increase of 7.2% , slightly lower than the 7.3% in the first quarter , the slowest growth rate for Amazon in the past two decades. Still, overall it beat market expectations of $ 119.09 billion.

Amazon 's Q2 net loss of $ 2 billion is understood to be largely due to a loss of $ 3.9 billion in Rivian , an electric vehicle company invested by the company, after a loss of $ 7.6 billion in the first quarter.

The reasons for the challenging performance this quarter, Amazon said are mainly the following aspects:

1. With the advent of the post-epidemic era, the e-commerce online shopping boom brought about by the epidemic is fading;

2. Due to the repeated epidemics and the unstable influence of the global political and economic situation, the global supply chain problem continues;

3. Under the pressure of high inflation, fuel and energy costs continued to rise, and consumer discretionary spending slowed down;

4. Pandemic-driven overexpansion has left Amazon with too many employees and excess warehouse capacity.

However, Amazon President Andy Jasey said in the report: "Despite persistent inflationary pressures on fuel, energy and transportation costs, we made progress on the manageable costs mentioned in the last quarter, in particular increasing the We deliver the productivity of the network."

Of course, this financial report also has something to cheer about. Revenue growth from core businesses such as Amazon's advertising business and cloud business AWS is the main driver of Amazon's bucking the trend. Amazon’s second-quarter advertising revenue rose 18% year-on-year to $ 8.757 billion, and AWS ’s sales rose 33% year-on-year to $ 19.74 billion, accounting for 16% of total revenue and contributing $ 5.715 billion in profit.

At the same time, the revenue of Amazon's third-party sellers still maintains a growth of about 9% , which also shows that the sales volume of third-party sellers in Q2 is still considerable.

Compared with Q1 , Q2 also shows a positive trend. The most intuitive thing is that the loss is less than the US$ 3.8 billion in Q1 . And Q2 revenue and operating profit "beyond expectations." If you exclude the loss of the electric vehicle industry that Amazon has invested in, the revenue of other businesses is still positive.