Amazon.com Inc.'s (AMZN) second-quarter earnings dropped 7.7% as the Internet's No. 1 retailer by sales continued spending at a rate that outpaced even its heady revenue growth.
But the decline in profit wasn't as steep as feared, and took a back seat for investors to 51% sales growth. Shares were up 6.5%, at $228.15 after hours. The stock hit its latest high last Wednesday and had fallen 2.7% since then through the close.
"It was great revenue growth," BGC Partners analyst Colin Gillis said of Amazon's report. "That's all anyone's focusing on."
Amazon said it expects $10.3 billion to $11.1 billion in revenue in the current quarter. Analysts on average project $10.35 billion, according to a survey by Thomson Reuters. Amazon also predicted that operating income could fall as much as 93% in the third quarter.
Amazon has been investing aggressively in distribution and new technologies at the expense of the bottom line in recent quarters. More @online.wsj.com
But the decline in profit wasn't as steep as feared, and took a back seat for investors to 51% sales growth. Shares were up 6.5%, at $228.15 after hours. The stock hit its latest high last Wednesday and had fallen 2.7% since then through the close.
"It was great revenue growth," BGC Partners analyst Colin Gillis said of Amazon's report. "That's all anyone's focusing on."
Amazon said it expects $10.3 billion to $11.1 billion in revenue in the current quarter. Analysts on average project $10.35 billion, according to a survey by Thomson Reuters. Amazon also predicted that operating income could fall as much as 93% in the third quarter.
Amazon has been investing aggressively in distribution and new technologies at the expense of the bottom line in recent quarters. More @online.wsj.com
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