Amazon Surges After Jassy Spurs Sales Growth, Reins in Costs
Amazon.com Inc. Chief Executive Officer Andy Jassy pulled off a financial double play this earnings season: generating strong revenue growth from the core e-commerce business while cutting the pace of spending. The shares rose about 9% as the markets opened on Friday.
Since taking the reins two years ago, Jassy has brought a decidedly unsentimental perspective to the world’s largest e-commerce and cloud services company. Under his direction, Amazon fired 27,000 people and pledged to keep its headcount flat for the foreseeable future, whacked dozens of projects hatched during Jeff Bezos’s tenure, and put multiple businesses under review.
Andy Jassy, chief executive officer of Amazon.Com Inc., during the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021. The GeekWire Summit brings together business, tech and community leaders for discussions about the future. Photographer: David Ryder/Bloomberg
On Thursday, investors got a fresh look at the results. Second-quarter revenue increased 11% to $134.4 billion, the company said in a statement, topping estimates. Sales in the online store's category increased by 4% to $53 billion. Amazon’s cloud business, which typically supplies most of the company’s operating profit, exceeded expectations and showed signs of stabilizing.
“The upturn in Amazon’s e-commerce business is an encouraging sign for the back half of the year that should add to topline growth,” Andrew Lipsman, an analyst at Insider Intelligence, said after the results.
Amazon shares rose 9.1% to $140.67, for their biggest intraday gain since November. The stock has increased almost 68% so far this year.