Amazon's Revenue Rises 25% on Retail Dominance
Amazon.com Inc.'s revenue rose 25% in the second quarter, bucking the retail industry's slump with its dominance of online shopping.
However, Amazon said Thursday that profits fell 77% as Amazon spent heavily to expand. Profits were $197 million, or 40 cents, down from $857 million, or $1.78 per share, a year earlier. Analysts surveyed by Thomson Reuters expected adjusted earnings of $1.42 per share.
Sales in the second quarter were $38.0 billion, up from $30.4 billion a year ago. That was above Amazon's own forecast of $35.25 billion and $37.75 billion for the quarter and above analysts' expectations of $37.18 billion.
Shares of the company fell 1.2% in after-hours trading after finishing $1,046 on Thursday. Shares were up about 39% year-to-date after the close.
Amazon's stock hit a record high Thursday morning ahead of the results before closing down, temporarily making Amazon founder and Chief Executive Jeff Bezos the world's richest person. According to Forbes, which tracks a list of billionaires, Mr. Bezos reached a net worth of $90.6 billion as the market opened, pushing him in front of Microsoft Corp. founder Bill Gates.
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(END) Dow Jones Newswires
July 27, 2017 16:46 ET (20:46 GMT)