Amazon’s shares fell sharply in after-hours trading after the company forecast lower-than-expected sales for the current quarter and its second-quarter profit beat Wall Street expectations.
Amazon’s focus on the success of its AWS cloud computing platform did not please investors, with the Seattle-based company’s shares falling more than 6% in after-hours trading.
“We continue to make progress on many fronts, but perhaps most notably the continued re-acceleration of AWS growth,” CEO Andy Jassy said in the earnings release.
Amazon’s cloud business, Amazon Web Services (AWS), reported second-quarter revenue rose 19% to $26.3 billion, beating market expectations of $25.95 billion.
The company expects third-quarter sales of $154 billion to $158.5 billion, compared with analysts’ average estimate of $158.24 billion, according to LSEG data.
Net sales rose 10% to $148 billion in the second quarter. Profit rose to $13.5 billion from $6.7 billion in the same period last year.
