Amazon shares rose Amazon rose 10.36 per cent on Friday, just a day following the retailer’s second-quarter earnings growth and third-quarter solid forecast.
The three-month period ending in June increased 7 per cent to $121.23 billion, more than Wall Street’s expectations of $119.09 billion. This was Amazon’s third consecutive quarter of revenue growth.
Looking ahead, Amazon’s 3rd quarter forecast indicated that growth could be accelerated and range from 13 per cent to 17 per cent. Amazon estimates the revenue for this quarter to be between $125 and $130 billion.
The guidance provided was enough to allow investors to ignore the reported loss of $2 billion in Q2that Amazon stated was due to a variety of reasons, including Prime Day happening in Q3 this year and the $3.9 billion loss; as a result, the valuation of an investment in the electric vehicle maker Rivian Automotive Inc., which the retailer began to use to deliver its products in the U.S. this year in more than 100 cities. Amazon stated that it plans to be able to have more than 100,000 electrical Rivian vehicles delivered by 2030.
In a brief announcement in a brief statement on Thursday, Amazon chief executive Andy Jassy stated that the company is “making progress on the more controllable costs,” especially in increasing the efficiency of its fulfilment network.
Chief Financial Officer Brian Olsavsky echoed the good news during the company’s third-quarter conference call. When addressing shareholders, Olsavsky declared that the business had seen improvements in many of its most important operational indicators, such as in-stock levels and delivery times, as well as a rise in consumer demand.
Amazon and Apple are among the few tech companies to post positive performance in the last quarter. Facebook is the parent company of Meta, Alphabet and Microsoft. All posted disappointing earnings in the quarter, as decades of high inflation, higher interest rates, and other macroeconomic pressures put pressure on their operations.
The same issues also impacted other retailers and footwear businesses during the week. Skechers Steve Madden, Boot Barn, Columbia Sportswear, Deckers and VF Corporation all reported impacts on their businesses due to macroeconomic consequences, such as recession fears and slowdowns in supply chain operations and inflation, leading to a decrease in consumption by consumers. Adidas and Walmart reduced their forecasts for the quarter before releasing their earnings due to similar concerns.