Amazon has its second quarter of losses.
The e-retail giant recorded another three months of losses but the share price increased over 10 per cent following the market’s closure on Thursday (28.07.22) following their revenue being more than touted.
Sales for the three month period - which ended in June - rose by seven per cent to £9.9 billion compared to the same period last year; £108.2 billion in 2021.
In April, when Amazon reported their losses - their first since 2015 - their share price dropped dramatically after they revealed their sales slowed. After this news, their new CEO Andy Jassy - who took over from the founder, Jeff Bezos - remained positive about their future.
The chief executive said: “Despite continued inflationary pressures in fuel, energy and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network.”
The same period also saw a second quarterly loss of £1.6 billion, which is in stark contrast to their £5.7 billion profit in the same timeframe in 2021. Last quarter, Amazon reported a £3.1 billion loss, which is believed to be down to their investment in Rivian Automotive, a lagging electric vehicle manufacturer.
Their online outlet saw a four per cent fall in sales for the trading period, as like other retailers have battled against decreasing consumer demand and higher operating costs. This is in contrast to their success during the height of the ongoing COVID-19 pandemic as brick and mortar shops were closed due to social distancing measures and stay-at-home orders. Amazon now assert they pursued expansion too quickly during this time.
Their cloud computing services division, Amazon Web Services say their took in $16.3 in sales, which is more than was predicted.
Amazon is seeking to increase revenue in their third quarter of this year to between $125 billion and $130 billion, making a growth target of between 13 and 17 per cent.
