Amazon (AMZN) earnings for the second quarter of 2022

Amazon It will report second-quarter earnings after markets close on Thursday.

Here’s what analysts expect:

• gains: 13 cents a share, according to Refinitiv
• he won: $119.09 billion, according to Refinitiv
• Amazon Web Services: $19.56 billion according to StreetAccount
• Advertising: $8.65 billion according to StreetAccount

Amazon is rounding off what has been a difficult earnings season for Big Tech, as high inflation, higher interest rates and other macroeconomic challenges weighed on results. Facebook Parent dead mentioned disappointing Second Quarter Numbers He predicted trouble in the current period. the alphabet And the Microsoft Missed analyst estimates on the top and bottom lines. apple Reports on Thursday after the bell.

In one of Amazon’s largest and fastest growing markets, digital advertising, the news has been particularly bleak. facebook, google, Explode, Explode And the Twitter They all warned of slowing advertising demand, as brands and marketers cut back on spending to manage inflationary pressures.

The ad unit at Amazon, which tracks only Google and Facebook in the US, is expected to show 10% growth from the previous year to reach $8.65 billion.

For Amazon as a whole, analysts expect growth of 5.3%, compared to 27% in the last year’s quarter. That would mark the third consecutive quarter of single-digit annual revenue growth for Amazon.

Core retail activity has slowed significantly from the expansion of the past two years. At the height of the pandemic, Amazon’s sales and profits swelled, as shoppers avoided physical stores and flocked to online retailers.

Now, Amazon is calculating slowing e-commerce sales, along with rising costs. Last quarter, the company admitted it had too many workers and too much storage capacity after it invested heavily in its fulfillment network to handle the wave of e-commerce orders during the pandemic.

CEO Andy Gacy For CNBC in May That Amazon has taken steps to delay construction of some new buildings, or let lease contracts expire in order to “grow in this footprint.”

William Blair analysts estimated in a note to clients Monday that Amazon has postponed, paused or canceled more than 20 capital projects planned over the next year, representing about 25 million square feet.

Across the retail sector, inflationary concerns are becoming more pronounced. Amazon stock fell on Monday after Walmart Lowering its earnings forecast For the second quarter and a full year. best buy also lowered Its forecast for the second quarter and full year is on Wednesday.

Inflation could also affect Amazon’s cloud computing division. Mizuho analysts said in a note earlier this month that spending on the cloud may slow as companies look to cut costs. Amazon Web Services is expected to report a 32% increase in revenue from last year to $19.56 billion.

One of the major profit hits will likely come from Amazon’s investment in the electric car company Rivian. Last Quarter, Amazon Loss of $7.6 billion on her stake in Rivian, a radical shift from the previous period, when she was Gained nearly $12 billion From its possession in Rivian. Shares of Rivian plunged another 49% in the second quarter after dropping more than 50% in the first three months of the year.

Amazon shares are down about 27% so far this year, underperforming Nasdaqwhich is down nearly 22% since the start of the year.