Amazon reported a loss of $-0.20 per share on revenue of $121.2 billion for the second quarter.
The bottom line missed the expected $0.12 by 32 cents, but the market wrote it off since it greatly depended on a write-down on Amazon’s stake in Rivian that amounted to a -$3.9 billion loss. Instead, the market chose to focus on the bottom line beat and Amazon Web Services’ growth.
The former outperformed analyst consensus by $2.1 billion. The latter grew revenue by 33% to $19.7 billion. The latter was enough to push up AMZN stock by 13.6% to just shy of $139 after-hours, with observers pointing out that Amazon had been much too sold off heading into earnings.
If the market is a bit nervous ahead of Amazon (AMZN) earnings, it is not showing it. AMZN shares rallied 5.4% to close at $120.97 on Wednesday. The largest online retailer will issue second-quarter earnings results after the close on Thursday.
Amazon has a rather poor track record of late. Founder Jeff Bezos’ company has missed earnings forecasts two out of the past four quarters and four revenue projections in a row.