Amazon.com, Inc. (NASDAQ:AMZN) stock surges 10.85% (As on June 29, 11:16:04 AM UTC-4, Source: Google Finance) after the company expects a jump in third-quarter revenue, as the retailer collects bigger fees from Prime loyalty subscriptions and as consumer demand remained high in spite of rising inflation. However, Amazon lost $2 billion in the second quarter, including a pre-tax valuation loss of $3.9 billion from its investment in Rivian Automotive Inc. Net loss was $2.0 billion in the second quarter compared with net income of $7.8 billion, in second quarter 2021. Operating cash flow decreased 40% to $35.6 billion for the trailing twelve months, compared with $59.3 billion for the trailing twelve months ended June 30, 2021. Free cash flow decreased to an outflow of $23.5 billion for the trailing twelve months, compared with an inflow of $12.1 billion for the trailing twelve months ended June 30, 2021.
AMZN in the second quarter of FY 22 has reported the adjusted earnings per share of 18 cents, beating the analysts’ estimates for the adjusted earnings per share of 13 cents. The company had reported the operating income of $3.3 billion in the second quarter of FY 22, beating the analysts’ estimates for revenue of $1.8 billion, according to research firm FactSet. Net sales increased 7% to $121.2 billion in the second quarter, compared with $113.1 billion in second quarter 2021. The company’s extra costs from inflation, productivity and other items were $4 billion, in line with Amazon’s expectations and about $2 billion less than it faced at the year’s outset. Cloud-computing division Amazon Web Services beat estimates, too. The unit posted revenue of $19.7 billion, ahead of the more than $19.5 billion analysts had estimated Amazon would collect for the second quarter.
The online retailer projected net sales between $125 billion and $130 billion for the third quarter of 2022, while analysts were expecting only $126.42 billion, according to IBES data from Refinitiv. Operating income is expected to be between $0 and $3.5 billion, compared with $4.9 billion in third quarter 2021.
Meanwhile, the automakers continue to launch Alexa integrations in new vehicle models, including the 2023 Acura Integra, 2023 GM Equinox, and 2022 Lucid Air. Amazon now has over 1 million registered developers, brands, and device makers building with Alexa. AWS added to its more than 200 products and services to help customers lower costs, increase agility, and innovate faster.