Amazon beats expectations to avoid tech revenue downturn

The e-commerce giant on Thursday reported net sales of $121.2 billion for the quarter ended June 30, up 7% from the same quarter last year and above analysts polled by Refinitiv’s forecast of $119 billion.

Amazon (AMZN) shares rose more than 11% in after-hours trading, ignoring the company’s $2 billion loss, which it attributed in part to its investment in electric truck maker Rivian. Amazon published bigger loss last quarter that this is also related to Rivian’s investment.

“Despite continued inflationary pressures on fuel, energy and transportation costs, we are making progress on the more manageable costs we alluded to last quarter, specifically by improving the performance of our order fulfillment network,” Amazon CEO Andy Jassi said in a statement.

Amazon’s performance was supported by its Amazon Web Services cloud business, which posted $5.7 billion in revenue on nearly $20 billion in revenue, up 33% year-over-year.

The after-hours jump in the company’s stock was also likely the result of the upbeat guidance released for the current quarter.

Amazon said it expects net sales of $125 billion to $130 billion in the third quarter, potentially up 17% from last year.