Revenue breaks through 100 billion U.S. dollars! Amazon's stock price plummeted by 7.56%

Financial News (Hong Kong) News After the end of the Bezos era, Amazon's first financial report was surprising. Although the revenue exceeded $100 billion for three consecutive quarters, the market did not buy it.

On July 30, 2021, Amazon released its latest earnings report. On the day the earnings report was announced, Amazon's stock price plummeted by 7.56%. Today, let’s take a look at Amazon’s latest earnings report. 

Financial report summary:

1. The business is in a stable period and the input-output ratio is stable. It is worth noting that in the income structure, the proportion of service income has increased significantly.

2. Decline in payables, resulting in a decline in operating cash flow

3. Long-term debt has risen sharply year-on-year, indicating that Amazon has increased demand for long-term cash flow.

4. In terms of foreign investment, the proportion of purchasing securities is relatively high. However, judging from the financial report disclosure, most of the investment is in money market funds and corporate bonds.

In general, Amazon has entered a period of steady development, and the only thing worth noting is the growth of its service business. Free cash flow has declined, and operating efficiency has a downward trend.

This is also the reason for the poor performance of the stock price on the day the financial report was released, and the capital market is not optimistic about its future upside potential.