Amazon Posts $2B Loss, Still Beats Wall Street Expectations
Amazon beat Wall Street expectations for its second quarter 2022 earnings Thursday, reporting revenues of $121.2 billion, up 7 percent from a year earlier and well above the $119 billion consensus. However, the company once again reported a loss, this time for $2 billion in the quarter.
The company’s share price rose by as much as 10 percent in after-hours trading with the company projecting net sales of between $125 billion and $130 billion, up double digits from the same quarter a year ago.
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The company has been grappling with inflationary pressures and logistics issues related to the pandemic, but CEO Andy Jassy said in a statement that the company is “making progress on the more
controllable costs.”
Notably, Jassy also called out Amazon’s entertainment efforts, calling out both the upcoming Lord of the Rings series and NFL Thursday Night Football as drivers of Amazon Prime. Earlier this month, for Prime Day, Amazon leveraged both properties as part of a Prime day promotional push.
Prime Day 2022 was held earlier this month, after Q2, so its effect won’t be felt until the Q3 report. However, the company disclosed that it sold more than 300 million items, selling Amazon-branded devices than any other Prime Day event before.
On the company’s earnings call, CFO Brian Olsavsky touted the company’s advertising business, noting that it has grown while others have begun to see slowdowns.
“When companies are looking to optimize or streamline their advertising spend, we think our products compete very well in that regard,” he added.
