In this video, I will be going over Amazon's (AMZN 0.37%) second-quarter earnings report and explain why the stock rose 12% and why this is still one of the best investments one can make for the long term.
- Net sales increased 7% to $121.2 billion, while net loss was $2 billion compared with net income of $7.8 billion in the same quarter last year.
- Online store sales decreased 4% year over year (YOY). But as I said in my last video, I'm not too concerned about that.
- Third-party seller services increased 9% YOY. That's one of the reasons why I'm not concerned about online store sales being down.
- Subscription services increased 10% YOY, and this part of the business is probably Amazon's biggest moat.
- Advertising services increased by 18% YOY even though online store sales were down.
- Lastly, Amazon's most lucrative segment, Amazon Web Services, increased 33% YOY.
- For Q3, the company expects net sales to come in at $127.5 billion at the midpoint, growing 15% YOY.
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*Stock prices used were the closing prices of July 28, 2022. The video was published on July 29, 2022.