Amazon stock up 14% despite second straight quarterly loss; net sales up
E-commerce giant Amazon posted a quarterly net loss of $2 billion, its second straight loss in a quarter, but strong revenue and continued growth of Amazon Web Services (AWS) saw its stock jump 14% in after-hours trading.
Net sales increased 7% to $121.2 billion in the second quarter (Q2), compared to $113.1 billion in the second quarter last year.
Net loss was $2 billion in the second quarter, compared to net profit of $7.8 billion in the same period last year.
The second-quarter (Q2) net loss included a $3.9 billion loss in non-operating expenses related to Amazon’s investment in Rivian Automotive, the company said in a statement late Thursday.
AWS reported operating profit of $5.72 billion on revenue of $19.74 billion, up from operating profit of $4.19 billion on revenue of $14.81 billion dollars a year ago.
“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 Andy Jassy, CEO of Amazon.
Amazon reported an operating loss of $2.4 billion in its e-commerce business on net revenue of $101.5 billion.
“We’re also seeing an acceleration in revenue as we continue to make Prime even better for members, both by investing in faster shipping speeds and adding unique benefits,” he added.
Amazon shares jumped 14% in after-hours trading. The stock had fallen 16% over the past three months.
“AWS continues to grow at a rapid pace and we believe we are still in the early stages of enterprise and public sector cloud adoption,” Chief Financial Officer Brian Olsavsky told analysts on a conference call. .
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