Why Amazon Stock Soared on Friday
Shares of Amazon (NASDAQ: AMZN) soared on Friday, adding as much as 12.6%. As of 11:52 a.m. ET, the stock was still up 10.9%.
The catalyst that sent the e-commerce platform surging was its second-quarter financial report, and while the results were mixed, things were far better than many market watchers had predicted.
Amazon generated net sales of $121.2 billion, up 7% year over year, but even that doesn't tell the whole story. Absent the headwinds created by a strong dollar, revenue would have grown 10%. This resulted in a loss of $2 billion and a loss per share of $0.20, compared to earnings per share (EPS) of $0.76 in the prior-year quarter -- but this also requires context. The bottom-line results included a loss of $3.9 billion resulting from the declining value of its equity stake in Rivian (NASDAQ: RIVN) -- a number that will change each quarter along with the electric vehicle (EV) maker's stock price. Excluding that noncash loss, Amazon would have been profitable.
Source Fool.com
