Amazon shares rise after revenue beat
The company matched Wall Street expectations on profits but its sales were a slight surprise.
The company posted earnings of 23 cents a share, matching Wall Street expectations, while revenue was higher at $19.74 billion, versus expectations for $19.43 billion.
Shares climbed 2.1 percent in extended-hours trading to $344.16. The stock rallied nearly 4 percent in the regular session ahead of the earnings report.
"We get our energy from inventing on behalf of customers, and 2014 is off to a kinetic start," said CEO Jeff Bezos, in a press release. "Our device team launched Fire TV, offering great content, including our recently announced exclusive deal with HBO, and innovative features like unified voice search, which we're delighted is being adopted by so many new partners, including Netflix, HBO Go, Hulu Plus, Crackle and Showtime Anytime."
In addition, the company handed in second-quarter revenue of between $18.1 billion and $19.8 billion, versus expectations for $19.03 billion.
Amazon announced that streams on Prime Instant Video nearly tripled year over year.
Earlier Thursday, The Wall Street Journal said the retailer is testing its own delivery network for the final leg of customer orders. The company currently has a network in San Francisco, where Amazon-supervised contractors deliver packages around the area. It has plans to roll our similar services in Los Angeles and New York, according to the Journal.
Separately, Amazon said earlier this week it signed an exclusive deal with Time Warner's HBO and will begin streaming some of the network's shows to its Prime customers next month, a move that could lure subscribers away from rival Netflix (NFLX).
The online retailer has been focused on building its content libraries to tap the growing appetite for online video, and its Amazon Instant Video product has been taking on Netflix. Like Netflix, Amazon has been dabbling in original programming.
The company is in the midst of launching several big products, including its streaming video device Fire TV and "Dash,'' a wand-like device that allows users to compile an Amazon Prime grocery list, as it tries to stanch defections and build a case for Amazon Prime membership.
—Reuters contributed to this report
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There is relevant "Wayfare" sp? article in the new FORBES I read in semi-obsolete actual paper
(not virtual) last night. I presume a "Wayfaire" predicted eventual IPO will be compared. Doesn't Bezos deliver groceries in Seattle et al? And that was years ago. He expends company funds on experiments/innovations, and his "don't go away bitter," for the option of an unhappy employee is something amazing (to me) else. Yeah, he could be "too big," except he doesn't agree with such normative, common sense
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