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Amazon soars in the stock market with the positive impact of Rivian and digital advertising

Date: July 19, 2024 Time: 01:42:18

Amazon soars in the stock market after the presentation of its financial results for the second quarter that ended June 30, 2023, highlighting solid and significant growth in its operations. Shares of the e-commerce and cloud hosting giant rose 6% to $137 in after-hours market trading. In the regular session they rose 0.28%.

Amazon’s net sales increased 11% in the second, reaching $134.4 billion, compared with $121.2 billion for the same period in 2022. The company was unfavorably impacted by $300 million due to changes in exchange rates .

Amazon’s net profit in the quarter amounted to 6,700 million dollars, which compares with the losses of 2,000 million in the same period of 2022. This time, the technology took a positive impact of 200 million dollars on the net result due to the revaluation of its stake in electric car maker Rivian. In 2022 it obtained a depreciation loss of 3,900 million.

Operating cash flow increased 74% to $61.8 billion in the trailing twelve months, compared with $35.6 billion in the trailing twelve months ended June 30, 2022. Free cash flow was positive at $7.9 billion, compared with the output of -23,500 million that he noted in his accounts in June 2022.

The retail giant’s AWS digital advertising business will complete $10.68 billion in sales in just three months, up 22% from the April-June 2022 period. North America segment sales grew a 11%, up to 82,500 million, while the international area (rest of the world) entered 10% more, up to 29,700 million. Finally, the AWS (global) division increased its sales by 12%, up to 22,100 million, including what was registered in its advertising area, the division that is growing the most in the company.

“It was another solid quarter of progress for Amazon,” Andy Jassy, ​​the group’s chief executive, said in a statement. “AWS has continued to build on its significant leadership position in the cloud with a host of generative AI releases that make it much easier and more cost-effective for enterprises to train and run models (Trainium and Inferentia chips), customize large language models for build generative AI agents and applications (Bedrock) and write code more efficiently with CodeWhisperer,” he added.

Amazon also gave its usual guidance for the next quarter. Net sales are expected to be in the range of $138-143 billion, or grow 9-13% compared to the third quarter of 2022. “This guidance anticipates a favorable impact of approximately 120 basis points from rates exchange rate”, predicts the company, which expects operating income to range between 5.5 and 8.5 billion dollars, more than double compared to 2.5 billion dollars in the third quarter of 2022.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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