Amazon’s stock surged nearly 10% in after-hours trading on Thursday after the company reported strong earnings for the second quarter.
The online retailer’s net income was $6.7 billion in the quarter, compared to a net loss of $2 billion in the same quarter last year. Revenue rose 11% to $134.4 billion.
The results exceeded analyst expectations, and investors were encouraged by the company’s strong performance in both its retail and cloud businesses.
In the retail segment, Amazon’s sales grew 10% to $112.7 billion. The company said that strong demand for its Prime membership program and its fast delivery service helped to drive sales growth.
In the cloud business, Amazon Web Services (AWS) sales rose 16% to $52.8 billion. AWS is the world’s leading cloud computing platform, and it continues to grow at a rapid pace.
The strong earnings report sent Amazon’s stock price soaring in after-hours trading. The stock closed at $115.50 on Thursday, but it rose to $126.30 in after-hours trading.
The news of Amazon’s strong earnings is a positive sign for the broader tech industry. It suggests that consumer spending remains strong, even as the economy faces headwinds.