Here's Why Amazon Stock Plunged Today
Shares of Amazon.com (NASDAQ: AMZN) fell on Friday following the release of the e-commerce giant's second-quarter results. As of 3:15 p.m. EDT, Amazon's stock price was down more than 7%.
Amazon's net sales jumped 27% year over year to a staggering $113.1 billion, fueled by strong gains in its cloud computing and advertising businesses. Amazon Web Services (AWS) delivered revenue growth of 37%, up from 32% in the first quarter. Amazon's "other" segment, which is mostly comprised of advertising-related sales, saw even more impressive gains, with revenue rising a blistering 87%.
The strong performances of these high-margin businesses helped Amazon's net income soar 50% to $7.8 billion, or $15.12 per share. That was well above Wall Street's consensus estimate for earnings per share of $12.30.
Source Fool.com
