Amazon would have posted a profit if not for losses from its Rivian investment.
Amazon.com Inc. decided to cut back after years of pouring money into growth, and the result was a second consecutive quarterly loss, but a beat on sales and continued strong growth from Amazon Web Services helped push the stock higher in after-hours trading Thursday.
“Despite continued inflationary pressures in fuel, energy and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network,” Chief Executive Andy Jassy said in a statement included with the results Thursday, adding that “We’re also seeing revenue accelerate.”
Amazon has long relied on its Amazon Web Services cloud-computing service to make up for the thin-to-negative margins on its e-commerce business, but there were concerns that cloud-computing growth could slow down, as other tech businesses that rely on the service see pullbacks and cost cuts. Oppenheimer analysts projected that Amazon will look to cut prices on AWS as well.
AWS kept growing and producing strong profit in the second quarter. AWS produced operating income of $5.72 billion on revenue of $19.74 billion, up from operating profit of $4.19 billion on revenue of $14.81 billion a year ago, for a revenue growth rate of 33.3%. Analysts on average expected AWS operating income of $6.04 billion on net sales of $19.56 billion.
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