Dive into Amazon's mixed earnings as competition heats up in the AI race, leaving investors anxious about its spending. Discover how First Solar shines with unexpected profits and a rosy forecast for 2025. Explore insights from Reddit's financial performance and KLA's strong showing amidst Coinbase's struggles. Political discussions surrounding major mortgage players add an intriguing layer to the financial landscape, while the impact of Walmart's rise in e-commerce is making waves. Tune in for a whirlwind of market insights!
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Amazon Beats Expectations
Amazon's Q2 EPS and revenue beat expectations impressively.
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- Amazon (AMZN) projected operating income in the current quarter that fell short of analysts’ estimates, worrying investors that the tech giant is spending too much to keep up with competitors in the race for artificial intelligence. Operating profit will be $15.5 billion to $20.5 billion in the period ending in September, compared with an average estimate of $19.4 billion. Sales will be $174 billion to $179.5 billion, the company said Thursday in a statement. Analysts, on average, expected $173.2 billion. Revenue at Amazon Web Services, the largest seller of rented computing power, gained just more than 17% to $30.9 billion, just ahead of analysts’ average estimate of $30.8 billion. Chief Executive Officer Andy Jassy is juggling several challenges. He’s engaged in an AI infrastructure arms race with Microsoft Corp. and Alphabet Inc. that requires heavy spending on data centers. Walmart Inc. has emerged as a tough e-commerce rival, especially when competing for price-conscious shoppers looking for household essentials amid the trade war and tariff uncertainty.
- First Solar (FSLR) posted second-quarter earnings above analysts' expectations and raised its 2025 revenue guidance. The solar energy company reported $341.9 million in net income, or $3.18 a share, down from $349.4 million, or $3.25 a share, a year earlier. First Solar posted $1.1 billion in revenue, up from $1.01 billion the year prior. Analysts were expecting revenue of $1.04 billion. The company said the revenue gains were fueled by an increase in sales volume of solar modules to third parties. The company upped its full-year revenue guidance to be between $4.9 billion and $5.7 billion, up from $4.5 billion to $5.5 billion. It also narrowed its earnings guidance to a range of $13.50 to $16.50 a share, from $12.50 to $17.50.
- Reddit (RDDT) shares jumped after the company reported its most profitable quarter to date and projected third-quarter sales that far surpassed analyst expectations, signaling the strength of its growing advertising business. Sales for the current quarter are expected to be between $535 million and $545 million, Reddit said in a statement Thursday, with the midpoint of that range exceeding the average Wall Street estimate of $473 million. Net income was $89 million. Reddit, which went public in March 2024, has been investing in advertising technology, hoping to grow its share of the digital advertising business dominated by industry giants Meta Platforms Inc. and Alphabet Inc.’s Google. Reddit’s advertising revenue is currently driven by a small number of large companies, but the company has been focused on attracting more small- and medium-sized advertisers to reduce risk. The forum site is also building relationships internationally to diversify its roster of advertisers, said Jennifer Wong, Reddit’s chief operating officer, in an interview.
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