Amazon said on Thursday that second-quarter profits rose 48 percent from a year ago to $7.8 billion, but shares in the tech and e-commerce giant fell on disappointing sales.
Total revenues rose 27 percent to $113.1 billion, less than most Wall Street forecasts, leading to a roughly six percent drop in after-hours trading.
Andy Jassy, who became CEO of Jeff Bezos earlier this month, said Amazon continued to focus on providing goods and services to consumers during the pandemic.
“Over the past 18 months, our consumer business has been called upon to provide an unprecedented number of items, including personal protective equipment, food and other products that have helped communities around the world cope with the difficult conditions of the pandemic. said Jasy.
He added that Amazon’s cloud computing division, AWS, has “helped so many businesses and governments maintain business continuity…as more companies put forward plans to transform their businesses and move to the cloud.”
The Amazon results covered a range of earnings from major tech companies, highlighting rising profits and revenues as digital lifestyles and work-from-home trends continue even with the end of most pandemic lockdowns.
Tech rivals Facebook, Apple, Microsoft and Google’s parent company Alphabet all reported higher revenues and profits, even though they were more closely monitored by antitrust regulators because of their growing dominance of key economic sectors.
Amazon has been criticized for its workplace policies, but has argued that it pays above-average wages and invests billions in worker safety.
A growing number of consumers turned to Amazon for the delivery of goods and services, including groceries, during the pandemic, and the cloud computing division also grew to help businesses and consumers stay connected.
Amazon has also expanded its streaming television and artificial intelligence businesses.
Bezos stepped down from day-to-day operations at Amazon earlier this month, some 27 years after founding the company, and opted to devote more time to other projects, including his Blue Origin company, which briefly gave him the opportunity earlier this month. launched into space.
Originally an online bookseller, Amazon has grown into one of the world’s most valuable companies with operations in dozens of countries and a market value of approximately $1.8 trillion and 1.3 million employees.
Amazon’s revenue for the quarter was about $2 billion below the average analyst forecast and came despite a two-day event known as Prime Day designed to boost sales and attract more consumers to its Prime subscription.