Amazon’s ad sales up 20% to $12.77 billion in Q2

New Delhi: Amazon reported ad sales of $12.77 billion for the quarter, up 20% from the previous year. 

However, analysts had expected Amazon to generate $13 billion in ad revenue.

Amazon reported total revenue of $148.0 billion for Q2, marking a 10% increase but falling short of Wall Street's expectation of $148.56 billion.

The company's net income doubled to $13.5 billion, or $1.26 per diluted share, surpassing analyst estimates of $1.03 per share.

In announcing the results, CEO Andy Jassy, the former head of Amazon Web Services (AWS), highlighted the division's impressive performance. AWS saw a 19% increase in sales, reaching $26.28 billion, with segment operating income rising to $9.3 billion, compared to $5.4 billion in the second quarter of 2023.

For Q3, Amazon forecasts sales to range between $154.0 billion and $158.5 billion, representing an 8% to 11% growth compared to the third quarter of 2023. 

The company also expects operating income to be between $11.5 billion and $15.0 billion, up from $11.2 billion in Q3 2023.