Amazon (AMZN) is poised to split its stock for the first time in 20 years. The company recently reported adjusted earnings of 28 cents per share on $127.1 billion in revenue, beating analyst estimates by a penny. Revenue rose 15% from the same period last year, returning to double-digit growth after three straight quarters of single-digit growth. However, Amazon expects third-quarter revenue between $140 billion and $148 billion, which is below analyst estimates.
The stock fell after Amazon reported its earnings, but has recovered. Its earnings outlook is weaker than anticipated, and the company’s AWS costs are eating into its margins. In addition, the company’s operating losses are getting worse in e-commerce. While there is some good news in the near term, investors should be wary of Amazon for the time being.
