Amazon Stock Skyrockets After Reporting Strong Q2 Earnings
Yesterday, Amazon announced better-than-expected second-quarter revenue and gave solid guidance for the current quarter, and today, the company saw its shares soar more than 12% in a single day (via CNBC).
The e-commerce giant’s Q3 forecast suggested growth could reaccelerate to between 13% and 17%. Amazon said it projects revenue this quarter of $125 billion to $130 billion, whereas analysts were expecting sales of $126.4 billion.
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Sales for the three months ended in June grew 7% to $121.23 billion, which was also higher than Wall Street’s expected $119.09 billion.
“All in, Amazon provided investors with a very clean 2Q earnings, in the midst of extreme macro-related earnings volatility across tech,” wrote Deutsche Bank analyst Lee Horowitz.
According to some analysts. the results show Amazon is finally making progress on cost headwinds that have pressured the company in recent quarters.
“With a successful 2-day Prime Day event in July and mgmt discussing end demand concerns in its core businesses, we see Amazon well positioned to produce a strong revenue growth narrative in 2H′22,” wrote analysts at Goldman Sachs.
Amazon and Apple are the only two tech companies that have reported upbeat results in an otherwise gloomy earnings season. Facebook parent Meta, Alphabet, and Microsoft all announced disappointing results for the quarter.