Amazon Sales Dip Due to Prime Day Timing, Analysts Remain Optimistic
Amazon's quarterly sales figures show a decline of $4.47 billion in July, but most of this drop can be attributed to the timing of Prime Day. The online retail division accounts for 70% of this decrease, with nonstore sales decreasing by 2.2% from June and $3.15 billion compared to the same period last year.
The company's quarterly results are more promising, with revenue increasing 20% to $200.6 billion and operating income rising 43% to $27.5 billion. However, Amazon reported a negative trailing free cash flow of $7.6 billion due to increased spending on artificial intelligence.
Analysts remain optimistic about Amazon's future prospects, with Goldman Sachs maintaining a 'Buy' rating and a target price of $375. Despite the challenges posed by subdued consumer demand and significant AI investments, Amazon's CEO Andy Jassy stated that the company 'again set record delivery speeds for Prime members.'