Amazon reported second-quarter revenue that far beat market estimates, while also giving an extremely upbeat outlook and seeing its stock rally strongly in e-commerce.
In particular, the global e-commerce giant announced that its revenue reached $121.23 billion, up 7% year-on-year, against an estimate of $119.09 billion according to Refinitiv.
In the same context, it forecast that it expects revenue of $125 billion and $130 billion for the third quarter, when analysts expected $126.42 billion.
In a breakdown of its revenue, Amazon Web Services earned $19.7 billion in the quarter, compared with StreetAccount’s estimate of $19.56 billion.
The advertising sector moved in at $8.76 billion, also beating estimates of $8.65 billion.
Profitably, however, Amazon ended the second quarter with a loss of 20 cents per share, but that was due to a $3.9 billion hit from its investment in Rivian.
The electric vehicle maker’s stock plunged 49% in the second quarter, pushing Amazon’s loss for the year to $11.5 billion due to Rivian.
Because of Rivian’s impairment, analysts’ estimates of Amazon’s profitability varied dramatically, making it difficult to compare results to an average estimate.
In any case, shortly after the announcement of the figures, Amazon’s stock has a strong rally approaching 12%.
Source: Capital
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