Amazon Inc

Amazon.com delivered a mixed result surpassing Wall Street expectations in terms of revenues but missed out on earnings. While its financials were hit by inflation, the company has seen improvements in its main operational metrics, including delivery speed and in-stock levels. In consumer demand, a subsequent step-up has been seen. Net sales exceeded in the quarter, and the revenue growth accelerated to more than 40%. Stronger usage of the prime benefits has been seen, and a greater reliance of the customers for their entertainment and shopping is seen. The company made solid progress in reducing several cost pressures that faced the fulfillment network productivity, inflationary costs, worldwide stores business, and fixed cost deleverage. The incremental costs were seen in line with the management’s expectations. Amazon has made strides in improving fulfillment network productivity and also took steps to slow future network capacity additions. AWS is continuing to grow at quite a fast pace. The company continues to invest in innovative infrastructure thoroughly, iterating quickly and developing new services to enhance existing services. We provide the stock of Amazon.com with a ‘Buy’ rating with a revision in the target price.