Amazon Cruises Past Wall Street Q2 Estimates, With Advertising Surging 22% Over Year-Ago Levels – Deadline
Amazon reported strong financial results for the second quarter of 2023, with significant growth in both sales and profit. Sales increased by 11% to $134.4 billion, surpassing analyst predictions of $131.4 billion. The surge in sales was attributed to strong demand for a wide range of products, including fast delivery for Prime deals and advertising services.
The company’s profit experienced a substantial jump compared to the same quarter last year. Net income for the second quarter was $6.7 billion, a significant increase from a net loss of $2 billion in the second quarter of 2022. This impressive growth in profit outperformed Refinitiv analyst predictions of $3.592 billion in earnings.
Amazon’s stock saw a surge of nearly 10% in after-hours trading following the announcement of the financial results. Year to date, the stock has risen by 52%, contributing to the overall market’s growth.
One key driver of revenue for Amazon is its cloud computing division, Amazon Web Services (AWS), which saw a 12% increase in sales this quarter. AWS continues to be a leader in the cloud services market, competing with companies like Google and Microsoft. Additionally, Amazon is leveraging generative AI to enhance the e-commerce shopping experience and to gather customer feedback about products on the site.
Amazon’s advertising services also experienced strong demand, with the ad business growing by 22% to $10.7 billion.
Looking ahead, Amazon projects a growth rate of 9% to 13% in sales for the third quarter of 2023 compared to the previous year. The company remains optimistic about the future and continues to invest in AI and other technologies to drive innovation and customer satisfactio
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