New York CNN
Amazon's (AMZN) sales boomed in the second quarter on strong demand for its wide variety of products. From Prime Deals to Ads, this fueled a massive increase in profit compared to a year earlier.
Sales increased 11%, to $134.4 Billion. This is an increase of $121.2 billion from the second quarter 2022. Analysts had predicted $131.4 billion in revenue. The number exceeded analyst predictions of $131.4 billion revenue.
Stocks surged by 7% after hours.
Profits for the company have risen dramatically compared to last quarter. The company's net income in the second quarter was $6.7 billion, compared with a loss of $2 billion for the second quarter in 2022. Refinitiv analysts had predicted $3.592 billion.
Investors closely monitored customer spending on both the cloud-based and retail markets.
Amazon Web Services is a company cash cow that has been around for a long time. Cloud users were worried about the health of the economy, which led to a slowdown in growth. AWS's sales increased by 12% this quarter, which is a slight slowdown.
Andy Jassy, the CEO of Jassy Technologies, said in a statement that 'a slew generative AI releases have allowed our cloud business to stay a leader and compete with Google (GOOG), Microsoft (MSFT) and others. Jassy added that AWS's growth has also'stabilized'.
AWS is confident about the future of the company, even though its big bet on AI didn't translate into quicker gains. It has also experimented with e-commerce. It is working on using AI to summarize customer feedback regarding products on the website.
Amazon attributes its strong quarter also to the fast delivery speeds.
Jassy said that there was a 'continued strong demand' for advertising services. Its advertising business increased by 22%, to $10.7 billion. This is a good sign for the digital advertising market.
Jassy stated in a statement that 'we continued to lower our cost of serving in our fulfillment networks, while providing Prime customers with our fastest delivery speed we've ever achieved.
Amazon expects to see a 9% to 13% increase in sales for the third quarter compared to last year.