Amazon’s quarterly profit rises, but its stock price falls.
Amazon reported a 48 percent increase in second-quarter earnings to $7.8 billion from a year ago on Thursday, but shares in the tech and e-commerce behemoth slumped on a disappointing revenue total.
Total revenues grew 27% to $113.1 billion, falling short of most Wall Street projections and causing a 6% drop in after-hours trade.
During the pandemic, Andy Jassy, who took over as CEO from Jeff Bezos earlier this month, said Amazon remained focused on delivering goods and services to customers.
“Over the last 18 months, our consumer business has been called upon to deliver an unprecedented number of items, including personal protective equipment (PPE), food, and other products that have helped communities all over the world cope with the difficult circumstances of the pandemic,” Jassy said.
Amazon’s cloud computing branch, AWS, he continued, “has helped so many organizations and governments preserve business continuity… as more companies push forward plans to transform their businesses and move to the cloud.”
Even with the conclusion of most pandemic lockdowns, Amazon’s results followed a sequence of earnings from big IT corporations that highlighted increasing profits and revenues as digital lifestyles and work-from-home trends continue.
Even as they faced more scrutiny from antitrust regulators for their expanding domination of important economic sectors, tech rivals Facebook, Apple, Microsoft, and Google parent Alphabet all reported stronger revenues and earnings.
Amazon has been chastised for its labor rules, although it claims to pay above-average wages and has spent billions on employee safety.
During the epidemic, an increasing number of people resorted to Amazon for delivery of goods and services, including groceries, and the company’s cloud computing section flourished to assist businesses and individuals stay connected.
Amazon has also been growing its artificial intelligence and streaming television operations.
Bezos stepped down from day-to-day operations at Amazon earlier this month, 27 years after founding the firm, to focus on other initiatives, including his Blue Origin company, which took him into space for a brief period earlier this month.
Amazon, which began as an online bookshop, has evolved into one of the most valuable firms in the world, with operations in dozens of countries, a market value of $1.8 trillion, and 1.3 million workers.
Despite a two-day event known as Prime Day aimed at stimulating sales and attracting more people into Amazon’s Prime subscription plan, the company’s revenues for the quarter were $2 billion below the average analyst projection.