Spotting Winners: Amazon (NASDAQ:AMZN) And Online Retail Stocks In Q2
As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the online retail industry, including Amazon (NASDAQ:AMZN) and its peers.
Online penetration surged during COVID before normalizing, consumer expectations around convenience, selection, fast delivery, and competitive pricing have remained permanently higher. Retailers have responded by investing in fulfillment networks, automation, omnichannel capabilities, and AI-powered personalization to serve customers more efficiently and improve the shopping experience.Today, ecommerce growth is driven less by first-time online adoption and more by increasing wallet share, higher purchase frequency, and the continued migration of traditionally offline categories online. As logistics networks and AI capabilities continue to improve, leading ecommerce platforms are well positioned to capture a growing share of consumer spending over the coming decade.
The 5 online retail stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 2.1% below.
In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.
Amazon (NASDAQ:AMZN)
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ:AMZN) is the world’s largest online retailer and provider of cloud computing services.
Amazon reported revenues of $200.6 billion, up 19.6% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates.
“AWS is booming, growing 36.7% year-over-year in Q2—our fastest growth in 18 quarters—and our AI and Chips businesses each eclipsed run rates of more than $25 billion,” said Andy Jassy, President and CEO, Amazon.
Interestingly, the stock is up 9.7% since reporting and currently trades at $258.26.
Is now the time to buy Amazon? Access our full analysis of the earnings results here, it’s free.
Best Q2: Revolve (NYSE:RVLV)
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NYSE:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.
Revolve reported revenues of $347.4 million, up 12.4% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and solid growth in its buyers.
