Amazon narrowly missed Wall Street estimates for total revenue in the second quarter, with that top-line softness combining with weak third-quarter guidance to send shares lower in after-hours trading.
The company’s stock joined a broader retreat by large-cap tech shares, falling almost 7% to around $172.
The Prime Video parent said revenue went up 10% in the quarter ended June 30, reaching $148 billion in the second quarter, falling short of analysts’ consensus of $158.56 billion.
Net income easily surpassed forecasts, nearly doubling the year-ago period to hit $1.26 per diluted share.
The earnings report included projections of third-quarter sales, which Amazon said would rise between 8% and 11% to $154 billion to $158.5 billion.
Operating income is expected to be between $11.5 billion and $15 billion, compared with $11.2 billion in the third quarter of 2023.
Advertising continued its recent growth trend, though at a moderately slower rate, rising 20% to $12.8 billion. The growth was better than that of any other revenue line.
MORE to come …