Amazon reported its second straight quarterly loss on Thursday, but the company’s stock price gained more than 10% in after-hours trading on higher-than-expected earnings.
Sales for the three months ending June rose 7% to $121 billion from $113.1 billion in the second quarter of 2021. The increase marks one of the slowest growth periods for Amazon in its story, but it was better than expected.
In April, when Amazon last released its quarterly results, the company’s stock price fell sharply after reporting its first loss since 2015 and saying sales had slowed. This time, Amazon CEO Andy Jassy was more optimistic.
“Despite continued inflationary pressures on fuel, energy and transportation costs, we are making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network” , said Jassy.
The company posted a second quarter loss of $2 billion compared to a profit of $7.8 billion for the same period in 2021. Amazon posted a loss of $3.8 billion in the previous quarter. Much of that loss was due to its investment in struggling electric vehicle maker Rivian Automotive.
The company’s online store business was down 4% for the quarter as it and other retailers struggled with slowing consumer demand and rising costs. Amazon was one of the biggest winners during the height of the coronavirus pandemic as shoppers moved online. But the company has now said it has grown too aggressively during the pandemic.
Amazon Web Services (AWS), its cloud computing division, reported revenue of $19.7 billion for the quarter, better than expected.
The company expects to post third-quarter revenue of between $125 billion and $130 billion, representing growth of 13% to 17%.