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Amazon Shares Rally after Strong Second Quarter and Guidance

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.

Inflation at levels not seen in decades, increasing interest rates, and other macroeconomic challenges all weighed on the operations of Facebook parent company Meta, Alphabet, and Microsoft, which all announced poor profits for the quarter. Wall Street applauded Amazon earnings report, with one analyst referring to the e-commerce giant as “a port in the macro storm” since so far it seems as though it is weathering many of the challenges facing its tech counterparts.

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.

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