Amazon surprises with Prime and improves its income despite inflation

has made its results public amid a wave of uncertainty. The company founded by Jeff Bezos has had losses of 20 cents per share compared to the 13 cents per share expected by analysts, but its revenues have exceeded expectations by achieving 121.230 million dollars compared to the 119,090 expected. After learning the news, the firm’s shares have skyrocketed by 10.45% in the ‘after hours’ market.

The losses include 3,900 million lost for its investment in Rivian Automotive, without counting this operation the firm would have achieved a profit of 1,900 million. This is the reason why the market has not taken losses negatively. The company affirms that “despite inflationary pressures, we are advancing in the most controllable costs, especially the productivity of the delivery network.” Apart from that, they are seeing how “Prime revenues accelerate.” This news stands out especially after an announcement two days ago that the brand will raise the prices of this service in certain markets, including Spain. In this sense, it is assumed that revenues could grow even more next semester.

Returning to the figures, revenues have risen by 7%. It has also beaten results in Amazon Web Services with 19,700 million compared to the 19,560 expected. They have achieved the same milestone in advertising sales reaching 8.760 million. The latter were in question after the main social networks and Internet-based businesses such as Snap, Facebook or Google, have had serious problems avoiding a drain on advertising revenue.

One fact that investors have particularly liked has been the company’s revenue estimates for the next quarter, in which they have pointed to a margin of between 125,000 million and 130,000 million. Figures that would mean growth of between 13% and 17% at a particularly challenging time for the world economy.

These results come in the midst of a climate of pessimism after the 2019 and an environment of high inflation in which companies like Amazon could find themselves having numerous problems to overcome the rise in prices.