Amazon.com Inc. (AMZN) shares jumped 8.5% after-hours and are up 0.55% in pre-market trading following the company’s stronger-than-expected second-quarter earnings.
Key Highlights:
- Amazon shares jumped 8.5% after-hours and are up 0.55% in pre-market trading following the company’s stronger-than-expected second-quarter earnings.
- Revenue rose 13% to $143.1 billion, beating analysts’ estimates of $140.5 billion.
- Profits were $94 cents a share, well above the consensus of 58 cents.
- Amazon’s cloud computing business, AWS, grew 12% to $22.1 billion, beating analysts’ estimates of $21.9 billion.
- Amazon’s advertising business grew 33% to $8.7 billion, beating analysts’ estimates of $8.5 billion.
Revenue rose 13% to $143.1 billion, beating analysts’ estimates of $140.5 billion. Profits were $94 cents a share, well above the consensus of 58 cents.
Amazon’s cloud computing business, AWS, grew 12% to $22.1 billion, beating analysts’ estimates of $21.9 billion. AWS is Amazon’s most profitable business and is a major driver of the company’s overall growth.
Amazon’s advertising business also grew strongly, rising 33% to $8.7 billion. The company’s advertising business is the second-largest in the world, behind Alphabet Inc.’s (GOOGL) Google.
Amazon’s strong earnings results come at a time when many other tech companies are struggling. The tech sector has been hit by a number of headwinds, including rising interest rates, supply chain disruptions, and the war in Ukraine.
Amazon’s CEO Andy Jassy said in a statement that the company is “seeing accelerating growth in our ads business, as well as continued strong growth in our cloud computing business, AWS.”
Jassy also said that Amazon is “making good progress on our strategic initiatives, including Prime Video, Alexa, and Just Walk Out technology.”
Amazon’s strong earnings results are a positive sign for the tech sector as a whole. The company’s results show that it is still able to grow despite the challenging macroeconomic environment.
Analysts Weigh In:
Analysts were generally positive on Amazon’s earnings results.
“Amazon’s earnings were a beat and raise, with strong growth across all segments,” said Daniel Ives, an analyst at Wedbush Securities. “AWS was the bright spot, with revenue growth accelerating to 12%.”
“Amazon’s advertising business is also firing on all cylinders, with revenue growth of 33%,” Ives said. “Overall, Amazon’s earnings were a strong validation of the company’s long-term growth story.”
Outlook:
Amazon is one of the most valuable companies in the world and is a major force in the tech sector. The company’s strong earnings results are a positive sign for the tech sector as a whole.
Amazon is well-positioned to continue to grow in the future. The company has a number of strategic initiatives underway, including Prime Video, Alexa, and Just Walk Out technology.
Investors are bullish on Amazon’s long-term prospects. The company’s shares are up over 50% year-to-date.
