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Amazon exceeds expectations to avoid falling tech profits

by yrtnews
July 31, 2022
Amazon exceeds expectations to avoid falling tech profits

The e-commerce giant on Thursday reported net revenue of $121.2 billion for the quarter ended June 30, up 7% from the same quarter last year and above $119 billion. forecast by analysts polled by Refinitiv.

Amazon (AMZN) Shares jumped more than 11% in after-hours trading after the results, ignoring the company’s $2 billion loss that it attributed in part to its investment in electric truck maker Rivian. Amazon posted a bigger loss last quarter which it also attributed to the Rivian investment.

“Despite continued inflationary pressures on fuel, energy and transportation costs, we are making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our distribution network,” said Amazon CEO Andy Jassy in a statement.

Amazon’s performance was supported by its cloud business, Amazon Web Services, which posted a profit of $5.7 billion on revenue of nearly $20 billion, a 33% increase from the previous year. same period last year.

The company’s after-hours stock jump was likely also the result of the upbeat forecast it issued for the current quarter.

Amazon said it expects net sales of between $125 billion and $130 billion for the third quarter, a potential growth of up to 17% over last year.

cnn World Gt

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