Dhe world’s largest online retailer, Amazon, significantly increased sales in the second quarter despite high inflation and fears of a recession. Revenues increased year-on-year by 7 percent to $121.2 billion (119 billion euros), as the group announced on Thursday after the US stock market closed. Although operating profit fell from $7.7 billion to $3.3 billion, it exceeded experts’ expectations. Bottom line, Amazon posted a net loss of $2.0 billion. The reason, however, was that a stake in the electric car manufacturer Rivian was devalued by $3.9 billion.
Despite persistent inflationary pressures in gas, energy and transportation, Amazon is making progress in controlling costs, CEO Andy Jassy said. In particular, productivity in the warehouse and delivery network has been improved. Nevertheless, operating expenses increased by around twelve percent to $ 117.9 billion compared to the previous year.
Nevertheless, the numbers were well received on the financial market, and the share rose by more than ten percent in after-hours trading. Investors were particularly pleased with the outlook for the current quarter. Amazon expects revenues of between $125 billion and $130 billion.
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Intel lowers annual outlook significantly, share falls
The weaker demand for computers and delivery bottlenecks continue to create problems for the chip group Intel. On Thursday, the US company significantly lowered its annual outlook after a sales decline in the second quarter. Intel shares lost five percent in after-hours trading. During the corona pandemic, significantly more companies and private individuals ordered PCs in order to be able to work flexibly.
However, given the current economic slowdown, high inflation and a return to the office, demand has fallen. That’s why Intel now only expects revenues of between 65 and 68 billion dollars in the fiscal year. So far, $ 76 billion had been promised. The US group generates around half of its sales with semiconductors for desktops and laptops.
In the second quarter, revenue fell by more than a fifth to $15.3 billion. The bottom line was a loss of $500 million on the balance sheet after a profit of $5.1 billion in the same period last year. Company CEO Pat Gelsinger said, “The quarterly results are below the standards we have set for the company and our shareholders.”
The Californian company already announced price increases in mid-July. Despite the headwind, CFO David Zinsner does not want to let go of the expansion course and stated that he intends to stick to the business strategy. Among other things, the group is investing around 17 billion euros in the construction of two semiconductor plants in Magdeburg, Saxony-Anhalt, and up to 100 billion dollars in a huge production facility in the US state of Ohio. Despite the economic downturn, Zinsner does not anticipate any delays in Ohio construction.
