After the business reported stronger-than-expected second-quarter sales and provided bullish forecast on Thursday, Amazon shares increased by more than 12 percent on Friday. Sales for the three months that ended in June increased 7% to $121.23 billion, beating Wall Street’s forecast of $119.09 billion. It marked the third consecutive quarter of single-digit yearly sales growth for Amazon.
According to Amazon third-quarter prediction, growth may pick up again, reaching between 13 and 17 percent. While analysts were anticipating sales of $126.4 billion, according to Refinitiv, the corporation stated that it forecasts revenue this quarter of $125 billion to $130 billion. In contrast to the generally depressing earnings season for IT businesses, and Apple announced positive numbers.
In the wake of high macro-related earnings volatility throughout the tech industry, analysts at Deutsche Bank lead by Lee Horowitz stated in a note to clients on Friday, “All in all, delivered investors with a fairly clean 2Q results.” The company raised its price objective for Amazon shares from $155 to $175 while maintaining a buy recommendation on the stock.