Amazon Posts Profit Boost but Misses Revenue Estimates, Stocks Dip

Amazon reported higher-than-expected quarterly profits but missed revenue estimates, leading to a drop in stock prices after-hours. The tech giant earned $13.5 billion in Q2, surpassing analyst expectations, but posted $148 billion in revenue, slightly below forecasts. AWS and advertising contributed significantly to growth.

Amazon reported a boost in its quarterly profits Thursday, but the company missed revenue estimates, sending stocks lower in after-hours trading.

The Seattle-based tech company said it earned $13.5 billion for the April-June period, higher than the $10.99 billion industry analysts surveyed by FactSet had anticipated. Amazon earned $6.7 billion during the same period last year.

Earnings per share for the second quarter came out to $1.26, higher than analysts expectations of $1.03.

Overall, the company posted revenue of $148 billion, a 10 percent increase that fell slightly below analyst expectations of $148.67 billion.

Sales for Amazon Web Services, the company's prominent cloud computing unit, saw a 19 percent jump compared to the same period last year.

Meanwhile, revenue for the company's core e-commerce business grew by 5 percent. Sales from its advertising business - which mostly comes from ad listings on its online platform - jumped by 20 percent.

Amazon's results follow other earning reports this week from tech giants such as Microsoft, Meta and Google's corporate parent, Alphabet Inc.

(With inputs from agencies.)