Amazon Inc recently reported sales growth and profit that beat Wall Street’s expectations as the company delivered goods faster and more cheaply to shoppers while recent cloud-computing headwinds began to subside.
Amazon’s shares surged 9% on the news, extending its stock market value more than $120 billion in after-hours trading.
For the second quarter, Amazon’s revenue grew 11% to $134.4 billion, beating estimates of $131.5 billion from analysts polled by Refinitiv. Amazon’s cloud-computing division has been key. In recent months, Amazon Web Services (AWS) saw its sales growth slow as wary businesses scrutinized their cloud bills. However, big companies were embracing the cloud anew, providing a lift to the division this spring and summer.
Amazon has also been working to optimize efficiency and lower costs at its fulfillment centers. Faster delivery speeds have meant that Prime loyalty customers are “shopping more often,” according to Brian Olsavsky, Amazon’s chief financial officer.
The strong sales growth and profit are a testament to Amazon’s continued dominance in the e-commerce and cloud computing markets. The company is well-positioned for continued success in the future.
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