Saturday, 02 Nov 2024

Amazon's stock surges as profit jumps and sales jump


Amazon's stock surges as profit jumps and sales jump
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Amazon (AMZN)'s sales boomed on strong demand in the second quarter for its wide range of products, from Prime deals to ads, fueling a massive jump in profit from a year ago.

Sales grew 11% to $134.4 billion. That's an increase from $121.2 billion in the second quarter of 2022. The number exceeded analyst predictions of $131.4 billion revenue. p

The stock surged 7% in after-hours trading.

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.

Investors were closely watching customer spending in both the cloud and retail markets.

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 users worried about the economy's health. This quarter's AWS sales increased 12%, a small slowdown.

In a statement, CEO Andy Jassy said "a slew of generative AI releases" has allowed its cloud business to remain a leader, competing with the likes of Google (GOOG) and Microsoft (MSFT). Jassy also added its AWS growth has "stabilized."

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