Amazon expects sales to jump in the third quarter thanks to unwavering demand despite higher fees.
Despite persistent inflation that has forced customers to cut back on spending, Amazon remains confident about customer demand, with net sales expected to be between US$125 billion and US$130 billion this summer, while analysts expect only US$126.42 billion.
Amazon chief executive Andy Jassy said the company is “seeing revenue accelerate as we continue to make Prime even better for members, both investing in faster shipping speeds and adding unique benefits such as free delivery from Grubhub for a year.”
In the second quarter, Amazon posted an operating profit of US$3.3 billion, surpassing analyst estimates of US$1.8 billion, made possible by the company’s profitable cloud computing division. Amazon reported earnings per share of 18 cents, above consensus earnings per share of 13 cents.
The company’s cloud computing division posted revenue of US$19.7 billion in the second quarter, above analyst estimates of US$19.5 billion.
Amazon, however, lost US$2 billion in the second quarter, including a pre-tax valuation loss of US$3.9 billion from its stake in Rivian Automotive.
The sources for this piece include an article in Reuters.