Tech
Amazon Beats Expectations To Avoid A Drop In Tech Earnings
(CTN News) – Despite inflation and the recession, Amazon appears to still be doing well.
For the quarter ended June 30, the e-commerce giant reported net sales of $121.2 billion, a 7% increase over last year’s quarter and higher than analysts’ forecasts of $119 billion.
Following the results, Amazon’s (AMZN) stock surged more than 11% in after-hours trading, shrugging off a $2 billion loss attributed in part to its investment in Rivian. Rivian investment also contributed to Amazon’s larger loss last quarter.
“Despite continued inflationary pressures in fuel, energy, and transportation costs, we are making progress on the more controllable costs we mentioned last quarter,” said Amazon CEO Andy Jassy.
AWS, Amazon’s cloud business, posted a profit of $5.7 billion on revenues of nearly $20 billion – a 33% increase from last year.
Stocks jumped after-hours as well as a result of the company’s optimistic outlook.
For the third quarter, Amazon expects sales of $125 billion to $130 billion, an increase of 17% over last year.
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