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Amazon Delivers Record Q2 Profit, While Sales Miss Wall Street Forecasts

Amazon sales came in shy of analyst expectations at $52.89 billion for the second quarter of 2018, but the ecommerce giant delivered a whopping beat on earnings per share.

The company posted net income of $2.53 billion in the second quarter — a quarterly record for the company, and a nearly 13-fold increase from net income of $197 million in the year-earlier period. Amazon reported earnings of $5.07 per diluted share, massively beating consensus Wall Street estimates of EPS of $2.50. Analysts were expecting revenue of $53.41 billion.

The results come after Amazon dramatically beat earnings expectations for the first quarter of 2018. It’s the company’s third straight quarter of posting more than $1 billion in net profit.

The Amazon Web Services division continued its blazing growth trajectory, with $6.1 billion in sales (up 49%) and operating income of $1.64 billion (up 79%) for the second quarter.

Revenue in Amazon’s “other” category — which primarily includes sales of advertising services — more than doubled to $2.19 billion, up 132% versus $945 million in the year-earlier period.

In prepared remarks about the quarter, founder and CEO Jeff Bezos focused on Alexa, the company’s voice-powered service. “There are now tens of thousands of developers across more than 150 countries building new devices using the Alexa Voice Service, and the number of Alexa-enabled devices has more than tripled in the past year,” Bezos said.

Among the highlights Amazon called out for Q2, the company in late June began shipping the Fire TV Cube, a 4K Ultra HD streaming-media player with Alexa that allows customers to control their TVs using voice commands.

The company also touted its 22 Emmy Awards nominations for Amazon Prime Video original programming, including 14 nominations for comedy series “The Marvelous Mrs. Maisel.”

In April, the National Football League announced a two-year renewal of its pact with Amazon for “Thursday Night Football,” which will be available to the ecommerce giant’s more than 100 million Prime video members worldwide. Additionally, Amazon and Britain’s Premier League announced that live and exclusive matches will be available to Prime members in the U.K. starting in 2019.

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