Data: FactSet and Amazon; Chart: Nicki Camberg/Axios
Amazon’s growth is accelerating as the company adapts to a new economic environment.
Fast forward: Sales increased to $ 121.2 billion in the second quarter, or 7% – the same pace as the first three months of the year, the company reported on Thursday.
Content: The result was better than the fear because the digital number and logistics come from a period of large investments in logistics, online shopping and increased costs.
A note: Online sales, in particular, decreased 4% year-on-year in the second quarter to nearly $51 billion from $53 billion.
Our thoughts: Amazon needs to run the brick-and-mortar model to set the stage for the next phase of growth, while selling online.
The big picture: When asked about the decline in consumer spending that Walmart says it’s seeing, CFO Brian Olsavsky said the company “didn’t notice a step down in June.”
What to watch: The bright colors in Amazon remain its AWS business and advertising, which grew by 33% and 18% each year, beating estimates.
Editor’s note: This report has been updated with information on the $3.9 billion pre-tax cost associated with Amazon’s record on its acquisition of Rivian Automotive in the second quarter. .