Amazon profits surge 35% but forecast sinks share price
The e-commerce giant said that the big investments in artificial intelligence started to work on Thursday, 35 percent of the three-month snow on Thursday.
However, the SEATTLE -based company was lower than the company hoped for a profit appearance for the current quarter, and investors worried that the cost of AI had profitability.
Amazon’s stock price was traded by about six percent after the clock transactions.
This is despite the second quarter that exceeds the maintenance of analysts, as for AI -oriented competitors Google, Microsoft and Meta, who publish buffer results for the period.
“Our belief that AI will change every customer experience,” pointing to the company’s extended Alexa+ service and new AI shopping agencies, “Our belief that AI will change every customer experience.” He said.
Amazon recorded a net profit of $ 18.2 billion for the second quarter ended on June 30, and in the same period of the previous year, $ 13.5 billion.
Net sales increased by 13 percent to $ 167.7 billion by defeating analyst expectations and reporting that the company’s high tariff trade policy under US President Donald Trump has survived the effects of trade policy.
“It continues to be too much noise about the impact of tariffs on retail prices and consumption. He said.
– ‘Curveballs’ –
Amazon Web Services (AWS), the company’s leading cloud computing section, rose to $ 30.9 billion with an increase of 17.5 percent.
The business profit of the unit rose from $ 9.3 billion to $ 10.2 billion compared to the previous year.
Strong AWS performance reflects the increasing demand for cloud infrastructure to provide power to AI applications, which is a trend that benefits large cloud providers as they compete to adopt productive AI technologies.
However, investors were concerned about the great cash expenditures to follow AI’s ambitions and sent the share price more than three percent lower in post -overtime transactions.
Since Amazon increased capital expenditures on AI infrastructure and logistics, the company’s free cash flow fell from $ 53 billion to $ 18.2 billion in the same period of the previous year.
The company spent 32.2 billion dollars on property and equipment in a quarter, and a year ago, about twice the $ 17.6 billion, reflected big investments in data centers and rear room capabilities.
Amazon, largely for AWS investments in artificial intelligence this year, this year promised to spend up to $ 100 billion.
For the current quarter, Amazon is estimated to be between 174.0 billion and 179.5 billion dollars and represents a solid growth of 10-13 percent compared to the third quarter of 2024.
