Amazon is expecting a jump in its third-quarter revenue as the retailer collects large fees from Prime loyalty subscriptions and consumer demand remains high despite rising inflation, the company said on Thursday.
Shares of the company rose 13% in trading after the bell, boosting its market valuation by more than $150 billion, according to the news agency Reuters,
This week, its major rival Walmart Inc said it would earn much less than it expected this year as US consumer confidence has waned recently, and some are still clinging to lower-priced essentials to manage economic woes. Has happened. However, that hasn’t stopped Amazon.
The online retailer’s net sales for the period this summer are between $125 billion and $130 billion, while analysts expected only $126.42 billion, as reported by Refinitic’s IBES data, the agency reported. Reuters,
In an official statement, Chief Executive Andy Jesse said the company is seeing a boom in revenue as it continues to update Prime for members, adding unique benefits such as free delivery for one year.
even though, heroine Its stock had more products in 2020 than before the Covid-19 pandemic, Olsavsky, chief financial officer, told reporters on a conference call. According to the company’s press statement, it is doubling the number of items it can deliver in just a day after purchase, marking a long-term commitment. Amazon’s July marketing event ‘Prime Day’ was the biggest ever in terms of unit sales, the release said.
“It looks like Amazon is finally ready to turn the corner after a rocky pairing,” said Insider Intelligence analyst Andrew Lipsman.
In North America, Amazon’s largest market, net sales grew 10% in the recently ended second quarter, compared to a 22% gain in the same period last year. The company’s international unit saw a 12% outright decline. This period of record profit paved the way for Amazon’s first quarter loss in the previous seven years in the first quarter of 2022.
The online retail company lost $2 billion in the second quarter, including a pre-tax valuation loss of $3.9 billion from its investment in Rivian Automotive Inc. However, it beat expectations of posting operating income of $3.3 billion, according to research firm FactSet. ,
(with inputs from agencies)
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