- Amazon is expected to see its second-quarter profit decline from last year as it continues to invest in new areas like video.
- Sales are expected to jump 22 percent year over year with its cloud business revenue growing 41 percent from last year.
- Wall Street will have questions around the Whole Foods deal and Amazon's international expansion, as well as the slowing growth of AWS.
Wall Street sees Amazon posting a decline in profit compared with last year when it reports second-quarter results Thursday, as the company continues to invest in new areas like video, hardware devices and international expansion.
Amazon is expected to report second-quarter profit of $1.42 per share, down from the $1.78 per share reported a year ago, according to Thomson Reuters.
Revenue is projected to come in at $37.2 billion, up 22 percent from last year's $30.4 billion. The company forecast revenue in the range of $35.25 billion to $37.75 billion.
These are the most important questions Amazon may have to address during the earnings call:
- Whole Foods: Amazon announced it was acquiring Whole Foods for $14 billion last month. Although it's unlikely the company will discuss the deal, as it hasn't closed yet, Amazon may have to explain the role of physical retail in its long-term plan. Amazon has expanded its presence in brick-and-mortar bookstores and grocery stores in recent months, too.
- International: India remains a big focus for Amazon as it continues to invest in international expansion. Amazon's deal to buy Souq.com, one of the biggest e-commerce shops in the Middle East, just recently closed, so there could be some questions about that as well.
- AWS: Wall Street expects Amazon Web Services to report $4.08 billion in revenue, up 41 percent from the year-ago period. Although impressive, that growth would represent the eighth straight quarter of decelerating growth for AWS, a trend that could potentially slow Amazon's overall expansion plans.
- Trump: President Donald Trump continues to attack Amazon with antitrust and tax evasion accusations. And just Wednesday, Treasury Secretary Steven Mnuchin raised questions by saying he does not "understand the consistency" of Amazon's tax practices.
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