Amazon.com Inc (NASDAQ:AMZN) shares were off almost 9% in pre-market trading after the eCommerce giant’s second-quarter revenue came in short of expectations.
It posted a 10% year-over-year increase in revenue to $148 billion in after-hours results on Thursday, missing estimates of $148.6 billion.
Amazon Web Services (AWS) sales were up 19% at $26.3 billion. Analysts had expected 18% growth.
Profits jumped to $13.5 billion or $1.26 per share from $6.7 billion or $0.65 per share in the year-ago quarter. This topped estimates of $1.05.
For Q3, Amazon projected sales in the range of $154 billion and $158.5 billion, which at the midpoint is lower than Street estimates of $158.2 billion.
Operating income is pegged to be between $11.5 billion and $15 billion, compared to $11.2 billion in Q3 2023.
“We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth,” Amazon CEO Andy Jassy said in a statement.
“As companies continue to modernize their infrastructure and move to the cloud, while also leveraging new Generative AI opportunities, AWS continues to be customers’ top choice as we have much broader functionality, superior security and operational performance, a larger partner ecosystem, and AI capabilities.”
Amazon shares fell 8.8% to $167.26 ahead of Friday's opening bell.