Amazon stock

Though it reported a loss in e-commerce, profits in its cloud business jumped 36%. The company expects revenue growth to accelerate in the third quarter, and ...

CFO Brian Olsavsky said on the earnings call that the company expected to grow into its excess capacity in the second half of the year, which will improve profitability. In addition to the upside in e-commerce, Amazon's third-quarter guidance indicates that revenue growth is already reaccelerating. After a successful Prime Day earlier this month and with the holiday quarter to look forward to, Amazon's stiffest headwinds in e-commerce are likely behind it. That tailwind, combined with strong growth in AWS, means that the stock has probably bottomed out from the sell-off. On the bottom line, it sees operating income of $0 to $3.5 billion in the third quarter, below the $4.9 in operating income it made in Q3 2021. The good news for investors is that the current headwinds in the e-commerce business should eventually end. Revenue increased 7%, or 10% in constant currency, to $121.2 billion, ahead of the Wall Street consensus at $119.1 billion and the company's own guidance of $116 billion to $121 billion. In North American e-commerce, which includes the company's highly profitable advertising business, net sales increased 10% to $74.4 billion. Amazon lost $1.8 billion outside North America, down from a $362 million profit in Q2 2021. In a tough environment, Amazon beat both analyst expectations and its own guidance, driving the stock up 13% after hours on Thursday. Operating income of $3.3 billion was down from $7.7 billion in the quarter a year ago, as shopping habits have shifted away from e-commerce. The pandemic tailwinds it once enjoyed have faded, and the broader tech sell-off has weighed on it.