Business

Amazon Hits $7.8B in Profit Under New CEO, But Sales Fall Below Expectations

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Amazon reported $7.8 billion in profit during the second quarter, but its sales numbers — $113.1 billion — fell slightly below Wall Street expectations.

The Q2 performance represents a 50 percent increase in profit compared to the previous quarter and a 27 percent increase in sales for the company, which is now led by new CEO Andy Jassy. But investors had expected sales for the quarter to surpass $115 billion, especially since Amazon Prime Day occurred in June, and Amazon said in its earnings report that sales growth is expected to decline during the third quarter.

Amazon also revealed that its streaming TV ads and Twitch now reach 120 million monthly viewers across the U.S., but the company did not reveal specific metrics for its Prime Video service. The earnings report also did not mention the company's $8.45 billion acquisition of MGM that was announced in May.

"Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items," Jassy said in announcing the results. "At the same time, [Amazon Web Services] has helped so many businesses and governments maintain business continuity, and we've seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud."

Jassy, like his predecessor Jeff Bezos, did not participate in the Thursday earnings call.

This article was originally published by The Hollywood Reporter.