Friday’s premarket trading saw a significant surge in shares of Amazon, Inc. (NASDAQ:AMZN), the e-commerce behemoth renowned for its expansive product offerings and swift delivery services, following its strong performance in the second quarter.
In premarket trading, the share price leapt by 8.99% to $140.50, putting Amazon on track to reach its highest point since August 18, 2022, if the trend sustains.
In the second quarter, Amazon reported a hefty net sales amount of $134.4 billion, a 11% increase year-over-year. This comprehensive growth was driven by an 11% increase in North American sales, alongside a 10% rise in international segment sales, underscoring Amazon’s unrivaled global reach in the e-commerce domain.
Exceeding consensus estimates, which projected an earnings per share of $0.65 and a revenue of $22.1 million, Amazon’s quarterly results stood out.
Additionally, the AWS division of the company, which provides reliable, scalable, and inexpensive cloud computing services to businesses around the world, experienced a sales growth of 12%.
In a significant turn of events, Amazon managed to shift from a loss of $0.20 per share the previous year to a profit of $0.65 per share.
Looking ahead to the third quarter, Amazon projects its net sales to range between $138 billion and $143 billion, which would represent a 9%-13% year-over-year rise. The company’s operating income estimate is set between $5.5 billion and $8.5 billion, a significant increase from the previous year’s $2.5 billion.
Daniel Ives, an analyst at Wedbush, hailed the company’s robust results. “Amazon’s monster quarter and AWS’s impressive performance will put the company at the forefront of the tech sector, mirroring the overall cloud tailwinds observed by Microsoft & Google,” he commented.
Joseph Feldman, an analyst at the Telsey Advisory Group, maintained an Outperform rating on Amazon and increased the price target from $145 to $160, reflecting the company’s sustained growth potential.
