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Despite strong cloud growth, Amazon shares fall on revenue shortfall and lower guidance


Despite strong cloud growth, Amazon shares fall on revenue shortfall and lower guidance
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Despite higher-than-expected cloud computing revenue growth, Amazon.com Inc. saw its shares fall about 7% in after-hours trading on a second-quarter revenue shortfall and lower-than-expected guidance for the current quarter.
For much of the past year, the pandemic helped Amazon.com Inc. reach new heights as more people shopped online and more businesses flocked to the cloud, and not even the easing of pandemic restrictions seemed to slow it down.
But that pandemic boost appears to be over now, even as the Delta variant threatens to send more people into relative isolation once again. The retail and cloud giant said today that its second-quarter profit jumped 50% from a year ago, to $7.8 billion, or $15.12 a share. Revenue rose 27%, to $113.1 billion, though without the benefit of positive currency exchange rates, growth was 24%. ....

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Facebook beats earnings estimates but stock falls on growth slowdown warning


Facebook beats earnings estimates but stock falls on growth slowdown warning
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Facebook Inc. today easily beat estimates for its second-quarter results, but a warning that growth would slow in coming quarters knocked its stock down in after-hours trading.
The company said it earned a net profit of $10.4 billion, or $3.61 a share, slightly more than double its profit a year ago, as revenue jumped 56%, to $29.1 billion the fastest rate since 2016 and significantly higher than the first quarter’s 48%. Analysts on average had forecast a profit of $3.04 a share, up 68%, on revenue of $27.8 billion, up 49%.
But the news investors focused on was what’s coming, and they didn’t like what they heard. Facebook said in prepared comments that it expects year-over-year revenue growth to “decelerate significantly on a sequential basis” since it will lap 2020’s increasingly strong growth as the pandemic’s economic impacts eased. ....

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