Amazon's future

Amazon's profit clearly higher than expected - the stock rose

Amazon's profit per share landed at $5.75 for the quarter. Expectations were $1.82 per share. But the comparison may not be entirely fair, warns CNBC.

Revenue of $200.6 billion also beat expectations of $196.5 billion.

Revenue from the important cloud unit Amazon Web Services was $42.2 billion, against expectations of $40.54 billion.

“AWS is in full swing, growing 36.7 percent year-over-year in the second quarter — our fastest growth in 18 quarters — and our AI and chip businesses each reached annualized revenue of more than $25 billion,” said Andy Jassy, ​​Amazon CEO, in a statement.

The stock surged more than 9 percent in after-hours trading.

Expert: Strong cloud growth sent Amazon soaring

Amazon's stock surged over 9 percent in after-hours trading after the interim report showed that cloud revenue rose for the fifth consecutive quarter, writes Bloomberg.

Neither the negative cash flow nor the raised forecast for AI investments and other capital expenditures to $220 billion this year seem to scare investors.

According to Emarketer analyst Sky Canaves, this is because revenue growth for Amazon's cloud business "is accelerating while Amazon maintains tight cost control in other areas," writes the news agency.