Amazon still appears to be going strong, even as other big tech companies stumble under pressure from inflation and an economic downturn.
The e-commerce giant Thursday reported net sales of $121.2 billion for the quarter ended June 30, up 7% from the same quarter last year and ahead of analysts’ forecast of $119 billion polled by Refinitiv. .
Shares of Amazon (AMZN) were up more than 11% in after-hours trading following the results, wiping out the company’s $2 billion loss that it attributed in part to its investment in electric truck manufacturer Rivian. Amazon (AMZN) posted a larger loss last quarter similarly attributed to the Rivian investment.
“Despite continued inflationary pressures in fuel, energy and transportation costs, we are making progress on the more manageable costs we referenced last quarter, specifically improving the productivity of our fulfillment network,” Amazon CEO Andy Jassy said in a statement.
Amazon’s performance was bolstered by its cloud business, Amazon Web Services, which posted a $5.7 billion profit on nearly $20 billion in revenue — a 33% increase from the same period last year.
The company’s after-hours inventory surge was also likely the result of the optimistic outlook it released for the current quarter.
Amazon said it expects third-quarter net sales between $125 billion and $130 billion, a potential growth of a staggering 17% from last year.