Amazon stock up 14% despite 2nd consecutive quarterly loss
Amazon reported a quarterly net loss of $2 billion but strong revenues and continued growth from Amazon Web Services saw its stock soaring 14 per cent in after-hours trading
E-commerce giant Amazon reported a quarterly net loss of $2 billion, its second consecutive loss in a quarter, but strong revenues and continued growth from Amazon Web Services (AWS) saw its stock soaring 14 per cent in after-hours trading.
Net sales increased 7 per cent to $121.2 billion in the second quarter (Q2), compared with $113.1 billion in the second quarter last year.
Net loss was $2 billion in the second quarter, compared with net income of $7.8 billion in the same period last year.
The net loss in the second quarter (Q2) included a loss of $3.9 billion in non-operating expenses from Amazon's investment in Rivian Automotive, the company said in a statement late on Thursday.
AWS reported operating income of $5.72 billion on revenue of $19.74 billion, up from operating profit of $4.19 billion on revenue of $14.81 billion a year ago.
"Despite continued inflationary pressures in fuel, energy, and transportation costs, we're making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network," said Andy Jassy, Amazon CEO.
Amazon reported an operating loss of $2.4 billion in its e-commerce business on net revenues of $101.5 billion.
"We're also seeing revenue accelerate as we continue to make Prime even better for members, both investing in faster shipping speeds, and adding unique benefits," he added.
Amazon shares jumped 14 per cent in after-hours trading. The stock had fallen 16 per cent in the past three months.
"AWS continues to grow at a fast pace and we believe we are still in the early stages of enterprise and public-sector adoption of the cloud," Chief Financial Officer Brian Olsavsky told analysts during a conference call.