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Amazon’s stock price increases as the company’s Q2 earnings demonstrate a rise in profit and sales.

Amazon (AMZN) saw a significant increase in profits from the previous year’s second quarter as revenues soared on the back of high demand for its vast array of products.

At $134.4 billion, sales increased by 11%. This is a rise from the previous quarter’s total of $121.2 billion in 2022. This amount is a big achievement because it exceeds the predicted revenue of $131.4 billion.

In extended trading, the share price rose by about 10%. Amazon’s stock price has increased by 52% so far this year, making it one of the few technology companies whose gains have outpaced the market.

When compared to the same period a year ago, the company’s profits increased significantly. Second-quarter net income was $6.7 billion, compared to a net loss of $2 billion in the same period a year earlier. Its earnings of $3.592 billion blew away the estimates of Refinitiv analysts.

Investors were keeping a careful eye on cloud and retail customer spending.

CEO Andy Jassy released a statement claiming the company had reduced delivery times and costs for retailers.

Amazon Web Services has also been one of the company’s most reliable revenue generators for years. After a period of slower growth as cloud customers worried about the health of the economy, revenues in that segment increased by 16% last quarter. There was a little deceleration in AWS’s quarterly growth to 12%.

According to the statement, Jassy is able to compete with the likes of Google (GOOG) and Microsoft (MSFT) thanks to “a slew of generative AI releases” in its cloud business. In addition, Jassy mentioned that AWS expansion has “stabilised.”

Although Amazon Web Services’ (AWS) heavy investment in artificial intelligence (AI) has not yet resulted in quicker growth, the company is bullish about its future and is even experimenting with the online shopping experience. It’s trying to compile user reviews of available products using AI.

In addition, “strong demand” for Amazon’s advertising services persists, according to Jassy. Profit from advertising increased by 22% to $10.7 billion.

Jassy stated in the statement, “We continued reducing our cost to service in our fulfilment network, while also giving Prime customers the best delivery speeds we’ve ever recorded.”

Amazon forecasts third-quarter revenue growth of 9 percent to 13 percent from the same period a year ago.

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