Amazon Posts Strong Q2 Revenue Despite Ongoing Cost Pressures
Amazon surpasses second-quarter revenue expectations and provides an optimistic third-quarter forecast, causing shares to jump over 13%. The tech giant reduces its massive workforce by 99,000 employees as it navigates inflation and pandemic-era overexpansion.
Amazon shares jump more than 13% in extended trading after the company reports second-quarter revenue of $121.23 billion, beating analyst expectations. Both Amazon Web Services and the company's advertising segment also surpass Wall Street estimates, bucking a trend of disappointing results among other Big Tech peers.
The tech giant provides an optimistic outlook for the third quarter, projecting revenue between $125 billion and $130 billion. This positive forecast comes despite ongoing inflationary pressures in fuel, energy, and transportation costs that impact the company's bottom line and result in an overall quarterly loss.
Amazon trims its massive headcount by 99,000 employees to 1.52 million as it addresses pandemic-era overexpansion. While the company continues to hire engineers for key areas like AWS and advertising, executives indicate that overall hiring plans remain cautious amid broader economic uncertainty.