Amazon’s run of record profits ended amid higher shipping costs and slowing growth from its cloud-computing business. Shares fell after hours.
By Dana Mattioli July 25, 2019 4:33 pm ET Amazon.com Inc. AMZN -1.35% ’s record quarterly profit streak has ended, as the online retailer faced higher shipping costs, slowing growth from its cloud-computing business and a steeper loss in its overseas retail business.
The company’s second-quarter profit rose 3.6% from a year ago to $2.63 billion after more than doubling last quarter. It missed analysts’ consensus estimate. Amazon had posted its best-ever profit the previous four quarters. Read More Amazon’s shipping costs jumped 36% from a year ago—after hovering above 20% in recent quarters—in part because Amazon invested $800 million to make one-day free shipping the standard for Prime members, instead of two days. The company’s overall costs were up 21% partly because it incurred compensation-related expenses in the quarter.
Amazon’s sales grew 20% to $63.4 billion in its second quarter, reigniting quarter-to-quarter growth after shrinking the past four periods. The results sent Amazon’s shares down 2.7% in after-hours trading on Thursday to $1,921 a share. Before the late-afternoon report, the stock was up 30% this year, giving the company a market value of around $981 billion.Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Lil Nas X's 'Old Town Road' ties chart record for longest streak at No. 1'Old Town Road' ties chart record for longest streak at No. 1—and if Lil Nas X has anything to say about it, he's gonna break that record.
Read more »
Netflix Stock Snaps Nine-Day Losing StreakThe streaming leader saw its stock rise 3.5 percent on Wednesday to $317.94, down 17 percent since May.
Read more »
Netflix Stock Bounces Back, Ending Nine-Day Losing Streak With 3.5% PopShares in Netflix, which had lost $24 billion in value during nine consecutive trading days of decline, bounced back with a 3.5% gain on Wednesday. The stock closed at $317.94 on trading volume nea…
Read more »
Amazon’s run of record earnings comes to an end, and the stock is fallingAmazon.com Inc.’s run of record-high earnings came to an end Thursday, and shares fell in late trading despite strong sales growth.
Read more »
UPS' latest financial statements reveal why the 111-year-old logistics giant is becoming a stock market darling againUPS reported record profits in Q2. So after months of feeling shaky about the logistics giant, investors are now saying, 'Amazon, who?'
Read more »
Amazon’s run of record earnings comes to an end, and the stock is fallingAmazon.com Inc.’s run of record-high earnings came to an end Thursday, and shares fell in late trading despite strong sales growth.
Read more »