Amazon shares rose 11.5% in “after hours,” with investor sentiment boosted by revenue earned in the first quarter of this year, which was above expectations.
Quarterly revenue rose 9% year over year to $127.4 billion, higher than the $124.5 billion estimated by analysts polled by Bloomberg.
This figure includes the negative exchange rate impact of $2.4 billion, without which revenue would have been up 11% year-on-year.
Revenue was driven by better-than-expected performance in the advertising and cloud segments.
The technology company said in a statement that Amazon made a profit of $3.2 billion, compared to a loss of $3.8 billion in the first three months of last year.
However, earnings fell significantly from analyst estimates compiled by Bloomberg, which indicated $7.1 billion.
The company confirms that this net result does indeed include a $500 million reduction in its 17.23% stake in Rivian. It should be noted that since the beginning of the year, the car brand has lost 31.06% on the stock exchange.
Revenue is expected to grow up to 10% in the second quarter
In the report and accounts, the company also provides an account of “guidance” for the second quarter of this year.
Amazon expects revenue to grow between 5% and 10% year-on-year, between $127 billion and $133 billion.
This estimate “includes the negative impact of exchange rates by approximately 30 basis points,” the company warns.
Operating profit between April and June should settle in a range of $2 billion to $5.5 billion, up from the $3.3 billion achieved in the second quarter of last year.
These projections do not include mergers and acquisitions, restructurings or other transactions.
(Story updated at 9:37 p.m.).
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