Amazon shares climbed more than 11% in extended trading on Thursday after the company reported better-than-expected second-quarter revenue and gave an optimistic outlook.
- EPS: Loss of 20 cents
- Revenue: $121.23 billion vs. $119.09 billion expected, according to Refinitiv
Here’s how other key Amazon segments did during the quarter:
- Amazon Web Services: $19.7 billion vs. $19.56 billion expected, according to StreetAccount
- Advertising: $8.76 billion vs. $8.65 billion expected, according to StreetAccount
Revenue growth of 7% in the second quarter topped estimates, bucking the trend among its tech peers, which have all reported disappointing results.
Amazon said it expects to post third-quarter revenue between $125 billion and $130 billion, representing growth of 13% to 17%. Analysts were expecting sales of $126.4 billion, according to Refinitiv.
Amazon recorded a $3.9 billion loss on its Rivian investment after shares of the electric vehicle maker plunged 49% in the second quarter ended June 30. That resulted in a total net loss of $2 billion, and brings its loss for the year to $11.5 billion on the Rivian investment.
Because of the Rivian writedown, analyst estimates varied dramatically, making it difficult to compare actual results to a consensus number.
Amazon’s ad business is a bright spot in an otherwise gloomy quarter for online advertising, and shows the company is picking up share in one of its fastest-growing businesses.
Ad revenue climbed 18% in the period. Facebook, meanwhile, recorded its first ever drop in revenue this week, and forecast another decline for the third quarter. At Alphabet, advertising growth slowed to 12%, and YouTube showed a dramatic deceleration to 4.8% from 84% a year earlier.
This story is developing. Check back for updates.