Stock Jumps 10% As Q2 Revenues Beat Street View

Shares of Inc. (AMZN) jumped over 10% in extended trading session on Thursday after the online retail giant’s second-quarter revenues trumped Street estimates. The company posted a loss for the quarter hurt by a loss recorded on Rivian investment.

Seattle, Washington-based Amazon reported second-quarter net loss of $2.0 billion or $0.20 per share, compared with net income of $7.8 billion or $0.76 per share last year. This year’s loss includes a pre-tax valuation loss of $3.9 billion included in non-operating expense from investment in Rivian Automotive, Inc.

On average, 37 analysts polled by Thomson Reuters expected earnings of $0.13 per share for the quarter.

Amazon’s sales for the quarter increased 7% to $121.2 billion from $113.1 billion last year. Analysts had a consensus revenue estimate of $119.09 billion for the quarter.

“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.

Sales from North America gained 10% to $74.43 billion, while international sales slipped 12% to $27.07 billion. Meanwhile, revenues of Amazon Web Services, Amazon’s cloud service division, surged 33 percent to $19.74 billion.

Looking forward to the third quarter, the company expects sales of $125.0 billion to $130.0 billion. Analysts currently estimate revenues of $126.42 billion.

AMZN closed Thursday’s trading at $122.28, up $1.31 or 1.08%, on the Nasdaq. The stock further gained $12.47 or 10.20% in the after-hours trading.

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