Amazon shares jump after hours on better-than-feared second-quarter results

Amazon posted a net loss of 20 cents in the second quarter, up from 76 cents a year earlier, but revenue rose 7% better than expected to $ 121.2 billion.

Investors rewarded the tech giant’s shares in after-hour trading, which were up 11%. Markets prepared for worse news from the company.

Wall Street analysts were looking for 13 cents in revenue and $ 119.09 billion.

Advertising services, a growing category as the company promotes live sports and over-the-air streaming, saw an 18% increase from the previous year to $ 8.757 billion. Line orders, which include ecommerce, audio, and other areas of the empire along with video, are now the fourth largest revenue category behind online retailers, third-party sellers, and Amazon Web Services.

Questioned by teleconference with analysts on the macroeconomic problems affecting the advertising business (as Roku, Twitter and other digital players reported in recent days), the executives said they have not yet seen any signs. But they also said Amazon is unique given its status as a place where “people have their credit cards” when it comes to the company’s promotional offers.

When the coronavirus pandemic hit the world in early 2020, Amazon proved to be one of the largest corporate beneficiaries. Although its operations initially looked strained, it increased resources after a few months and ended the year with a significant rebound, then continued the momentum into 2021. However, the first quarter results reflect both a difficult comparison with an occasional boom. both the difficult economic conditions that many large companies face, particularly in the technology sector.

Although this quarter’s results have improved, the reduced performance shows that the pandemic has continued to overcome. It’s been a little over a year since Andy Jassi took over from Jeff Bezos to become CEO, and things have been going on with difficulty. There has been a turnover in the senior ranks, with the company seeing its long-standing strong shares disappear shortly after the 20-1 split went into effect last spring. Equities fell 35% in the second quarter, the strongest decline since 2001. The surge in inflation in the US and other parts of the world presented difficult challenges.

“Despite continuing inflationary pressures on fuel, energy and transportation costs, we are making progress towards the more controlled costs we saw last quarter, notably improving the productivity of our fulfillment network,” Jassi said in the earnings release. of the company. He also noted two September events: the launch of exclusive NFL live broadcasts on Thursday nights and the premiere of the long-awaited fantasy series. Lord of the Rings.