Amazon exceeded sales and earnings expectations in the second quarter, helping its shares jump by more than 10 percent in after-hours trading in New York. The world's largest online retailer presented figures that were significantly better than expected. Sales increased significantly in the second quarter despite high inflation and fears of a recession.
Well above expectations
Specifically, revenue increased by seven percent year-on-year to $121.2 billion, as the group announced in the evening. Although operating profit fell from $7.7 billion to $3.3 billion, it more than doubled what experts had expected. The operating margin, at 2.7 percent, was also ahead of forecasts, which were only 1.65 percent.
The bottom line is that Amazon posted a net loss of $2.0 billion. The reason was that a stake in electric car maker Rivian was devalued by $3.9 billion.
Despite persistent inflationary pressures in gasoline, energy and transportation, Amazon is making progress in controlling costs, CEO Andy Jassy said. In particular, productivity in the warehouse and delivery network has been improved. Nevertheless, operating expenses increased by around 12 percent to $ 117.9 billion compared to the previous year.
I like the view
Investors on the financial market are particularly pleased with the outlook for the current quarter. Amazon expects revenues of between $125 billion and $130 billion. Conclusion: A crisis is currently not in sight at Amazon.