Amazon Q2 2024: Revenue Growth & Profit Outlook | Cloud Performance

Amazon’s revenue growth slowed in the second quarter of 2024, with the company issuing a disappointing forecast for the current period, according to financial reports released on Thursday, August 1, 2024. While earnings per share exceeded analyst expectations, reaching $1.26 against an anticipated $1.03, overall revenue fell short at $147.98 billion compared to the expected $148.56 billion.

The slowdown comes as Amazon faces increasing competition, particularly from rapidly growing discount retailers like Temu and Shein, which facilitate direct sales from Chinese merchants to U.S. Consumers. Sales within Amazon’s online stores segment experienced modest growth of just 5% year-over-year. However, revenue from third-party seller services – encompassing commissions, fulfillment, and shipping fees – demonstrated stronger performance, expanding by 12% during the same quarter.

Amazon Web Services (AWS), the company’s cloud computing division, proved to be a bright spot, exceeding analyst estimates with revenue of $26.3 billion. This contrasts with the performance of Amazon’s advertising unit, which reported $12.8 billion in revenue, falling short of the anticipated $13 billion.

Looking ahead, Amazon projects revenue for the current quarter to fall between $154 billion and $158.5 billion, representing a growth rate of 8% to 11% year-over-year. The midpoint of this range, $156.25 billion, is below the average analyst estimate of $158.24 billion. This cautious outlook contributed to a decline in Amazon’s stock price in extended trading, falling as much as 6%.

Brian Olsavsky, Amazon’s chief financial officer, acknowledged the slower growth in North America, stating We did come in a little short on revenue growth in North America versus our internal estimates. This admission underscores the challenges Amazon is facing in its core retail market.

Despite the recent revenue miss, Amazon’s stock had experienced a significant increase earlier in the year, rising 21% as of Thursday’s close. However, trading on February 5, 2026, saw the stock close at $222.69, down $10.30 (-4.42%), and further declined in after-hours trading to $197.70, a drop of $24.99 (-11.22%).

A broader look at Amazon’s financial performance reveals a consistent pattern of revenue growth over the past two decades. In 2025, the company reported annual revenue of $716.92 billion, representing a growth rate of 12.38%. The fourth quarter of 2025 saw revenue reach $213.39 billion, with a growth rate of 13.63%.

Here’s a historical overview of Amazon’s annual revenue growth:

• 2025: $716.92B (12.38% growth)
• 2024: $637.96B (10.99% growth)
• 2023: $574.79B (11.83% growth)
• 2022: $513.98B (9.40% growth)
• 2021: $469.82B (21.70% growth)
• 2020: $386.06B (37.62% growth)
• 2019: $280.52B (20.45% growth)
• 2018: $232.89B (30.93% growth)
• 2017: $177.87B (30.80% growth)
• 2016: $135.99B (27.08% growth)
• 2015: $107.01B (20.25% growth)
• 2014: $88.99B (19.52% growth)
• 2013: $74.45B (21.87% growth)
• 2012: $61.09B (27.07% growth)
• 2011: $48.08B (40.56% growth)
• 2010: $34.20B (39.56% growth)
• 2009: $24.51B (27.88% growth)
• 2008: $19.17B (29.19% growth)
• 2007: $14.84B (38.50% growth)
• 2006: $10.71B (26.16% growth)
• 2005: $8.49B

Amazon’s revenue per employee currently stands at $438,105, with a workforce of approximately 1,578,000 employees. The company’s market capitalization is $2.38 trillion.

The company is also increasing spending, anticipating demand for artificial intelligence services. This investment, while potentially beneficial in the long term, is contributing to the current concerns about revenue growth and profitability.

Other companies in the sector, including JD.com ($183.14B revenue), Alibaba Group Holding ($142.16B revenue), PDD Holdings ($58.79B revenue), Coupang ($33.66B revenue), MercadoLibre ($26.19B revenue), Sea Limited ($21.04B revenue), DoorDash ($12.64B revenue), and Chewy ($12.58B revenue) all demonstrate the competitive landscape within the e-commerce market.