Amazon forecast current quarter sales below estimates, and shares fell sharply after hours even though second-quarter profit beat Wall Street estimates.
Amazon’s focus on successes in its AWS cloud computing did not cheer investors who sent shares of the Seattle-based company down more than 6% in extended trading.
“We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued re-acceleration in AWS growth,” CEO Andy Jassy said in a release announcing the results.
Amazon’s cloud business, Amazon Web Services (AWS), reported a 19% increase in revenue to $26.3 billion for the second quarter, surpassing market estimates of $25.95 billion.
The company expects revenue of $154.0 billion to $158.5 billion for the third quarter, compared with analysts’ average estimate of $158.24 billion, according to LSEG data.
Net sales increased 10% to $148 billion in the second quarter. Profit increased to $13.5 billion from $6.7 billion a year earlier.