Amazon Online Retail Sales Surged 11% In Second Quarter, Ahead Of Amazon Prime Day

Core Insights - Amazon's online store sales grew by 11%, marking a significant performance ahead of the Amazon Prime Day sales event [1] - Total net revenues reached $167.7 billion, a 13% increase, while net income rose 35% to $18.2 billion, despite a subsequent 8% drop in share price due to cautious third-quarter guidance [2] - Amazon Web Services (AWS) grew 17% to $30.9 billion, although this growth rate has slowed compared to previous quarters and is lagging behind competitors [3] Financial Performance - Amazon's online store sales exceeded Wall Street estimates, reaching $61.5 billion, more than double the growth rate of 5% from the previous year [3] - Services for third-party sellers generated $40.3 billion, maintaining growth similar to the previous year [4] - Advertising services increased by 23% to $15.7 billion, while subscription services grew 12% to $12.2 billion [4] Future Guidance - For the third quarter of 2025, Amazon expects net sales between $174.0 billion and $179.5 billion, reflecting a 10% to 13% increase, but operating income is projected to be lower than the previous year [5] Market Context - Amazon's online retail sales growth outpaced the industry's 6% growth in non-store sales during the second quarter [6] - The second-quarter performance does not include revenues from the Prime Day event, which occurred in July [6] - Record Prime membership signups and item sales in advance of Prime Day indicate strong future revenue potential [6] Product and Service Innovations - The return of Nike products and the introduction of new luxury brands have positively impacted online sales [7] - Amazon Pharmacy saw a 50% year-over-year growth, and a new perishables service reported strong customer adoption [8] - The company is expanding same-day and next-day delivery services to more U.S. customers by the end of 2025 [8] Pricing and Tariff Considerations - CEO Andy Jassy noted uncertainty regarding the impact of tariffs on retail prices, stating that demand has not diminished [9]