Amazon.com Inc (NASDAQ: AMZN) stock is up close to 15% in extended trading on Thursday even after the tech giant reported its second consecutive quarterly loss.
Amazon Q2 earnings snapshot
Lost $2.0 billion that translates to 20 cents per share
That compared to the year-ago 76 cents a share profit
Sales jumped 7.0% year-over-year to $121.2 billion
Consensus was 12 cents of EPS on $119 billion in sales
33% annualised growth in AWS was in line with estimates
Advertising revenue jumped 18% YoY to $8.8 billion
Subscription services revenue climbed 10% to $8.7 billion
The multinational took a $3.6 billion hit to sales on “unfavourable foreign exchange rates”. Its stake in Rivian also resulted in a $3.90 billion non-operating expense. Amazon stock is still down more than 20% versus its year-to-date high.
Other notable figures in Amazon earnings report
Online store sales were down 4.0% but physical went up 12% in the recent quarter. Other notable figures in Amazon Q2 earnings report include a 9.0% increase in revenue from 3rd party seller services.
A 17% gain in services more than offset a 2.4% drop in product sales. Amazon reported results a week after it signed a $3.90 billion agreement to buy One Medical.
Wall Street currently rates the Amazon stock at “buy” and sees upside to $167 on average.
Future outlook and CEO’s remarks
For the fiscal third quarter, Amazon forecasts its sales to fall in the range of $125 billion to $130 billion on up to $3.5 billion of operating income. In comparison, experts had called for a higher $4.4 billion of operating income on $126.7 billion in sales.
In the earnings press release, CEO Andy Jassy said:
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 fulfilment network.
The post Amazon stock up 15% despite second consecutive quarterly loss appeared first on Invezz.
