By Sam Boughedda
Amazon (NASDAQ:AMZN) shares jumped over 10% in extended trading Thursday following its second-quarter earnings release.
The tech giant missed earnings expectations, posting a loss of -20 cents per share, 33 cents worse than the analyst estimate of 13 cents per share. However, revenue for the quarter increased 7% year-over-year to $121.2 billion, topping the consensus estimate of $119.18 billion.
Amazon pointed to inflationary pressures in fuel, energy, and transportation costs as challenges they faced during the quarter.
"We're making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network," said Andy Jassy, Amazon CEO. "We're also 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, exclusive access to NFL Thursday Night Football games starting September 15, and releasing the highly anticipated series The Lord of the Rings: The Rings of Power on September 2."
On Prime Day, members shopped more than any other Prime Day event, purchasing more than 300 million items.
While Amazon's earnings may have disappointed investors, its outlook boosted its shares after-hours. In the third quarter, net sales are expected to be between $125 billion and $130 billion, representing growth of between 13% and 17% compared with the third quarter of 2021. It also topped analyst expectations. Amazon's guidance anticipates an unfavorable impact of approximately 390 basis points from foreign exchange rates.