[Financial Results Preview] Will Amazon, which is working to strengthen AI, improve its main AWS business

●Amazon8/4 Japan timeFinancial results are scheduled to be announced for 2Q 23 (April-6).

● Amazon 2023/12 2Q (April-6 fiscal year)Performance guidance(At the time of 1Q financial results, median value) was 130 billion dollars, an increase of 7% from the same period last year. Operating profit was set at 2 to 5.5 billion dollars (3.32 billion dollars in 222). Bloomberg'smarket consensusSo, the company's 2Q sales forecast is a 13.0% increase from the same period last year$131.63 billionWhat is the adjusted EPS forecast$0.66。

● The company's annual summer sale held over 2 days on 7/11 and 7/12“Prime Day”Sales areA record highWhile recording, online salesIt fell short of market expectations。

●AWSThe company's cloud service, called (Amazon Web Services), is in late JuneGenerative Artificial Intelligence (AI) fieldAs part of customer support at$100 million investmentIt was announced.

Although not reflected in the 23/2Q financial results, the company's annual summer sale was held over 2 days on 7/11 and 7/12“Prime Day” salesrecorded a record high. Meanwhile, online sales were about 12.7 billion dollars, up 6.1% from the previous year, which was lower than market expectations of about 10% increase. The discount amount per product was 6.7 dollars from 5.7 dollars the previous year, and while the expansion of the discount range by 18% was one of the reasons for sluggish sales growth, it seems that the increase in postpaid purchases and the fact that major retailers such as Walmart took advantage of prime sales also resonated.

It is the company's growth pillarAWS businessAlthough sales have been rising, the sense that it has plateaued has become clear. It became clear that the rate of increase in sales in 23/4 decreased by about 5 percentage points compared to the 1st quarter compared to the same period last year in the 23/1 quarter compared to the same period last year. Swami Sivasbramanian, the company's vice president who thought about providing generative artificial intelligence (AI) through AWS, said in an interview the generative AI (artificial intelligence) services that AWS, the cloud computing division under the umbrella of the umbrella, began providing in April”Bedrock (bed lock)Regarding”, it was revealed that thousands of companies have begun trial trials. In late June, the company wanted to support cloud service customers in the generative artificial intelligence (AI) field that automatically creates sentences, etc.Invest 100 million dollars (approx. 14.3 billion yen)Then it was announced. It will help companies incorporate generative AI into products and services. Under such circumstances, regarding the company's AWS business for the 2023/4/6 fiscal year, it was clarified that Wells Fargo anticipates a growth rate of about 10% compared to the same period last year, and the growth rate forecast for July was also raised from the conventional 7-8% increase to a 9-10% increase, and growth in cruising speed is also expected from 2024 onwards.