New York
CNN
—
Amazon’s sales boomed on strong demand in the second quarter for all of its copious products, from Prime deals, to ads, fueling a massive jump in profit a year ago.
Sales grew 11% to $134.4 billion. That’s an increase from $121.2 billion in second quarter of 2022. That exceeded analyst predictions of $131.4 billion revenue.
The stock surged 7% in after-hours trading. Investors were closely watching consumer spending in both the cloud and retail markets.
The company’s profit jumped sharply compared to this quarter last year. Its net income was $6.7 billion in the second quarter, compared to a net loss of $2 billion in second quarter 2022. It soared past Refinitiv analyst predictions of a $3.592 billion in earnings.
Amazon Web Services has long been a cash cow for the company. Last quarter, that segment’s sales rose 16% after a period of slowed growth as cloud customers clamped down on spending due to uncertainty about the economy’s health. This quarter’s AWS sales increased 12%, representing somewhat of a slowdown.
In a statement, CEO Andy Jassy said “a slew of generative AI releases” has allowed its cloud business to remain a leader.
Amazon also attributed its strong quarter to fast delivery speeds and its Prime Day Event in July, when Prime members purchased more than 375 million items.
Jassy added there is continued “strong demand” for its advertising services. Its ad business jumped 22% to $10.7 billion, a positive sign for the digital ad market.
“We continued lowering our cost to serve in our fulfillment network, while also providing Prime customers with the fastest delivery speeds we’ve ever recorded,” Jassy said in the statement.
Amazon said it expects its third-quarter sales to grow between 9% and 13% compared to the previous year’s quarter.
Sumber: www.cnn.com
