Amazon.com Inc. reported revenue that topped estimates and gave a strong sales forecast for the current quarter, allaying investor concerns about potential belt-tightening by inflation-rattled consumers. Shares jumped more than 12% in extended trading.
The company highlighted updates to its ads platform from the second quarter, including the launch of Amazon Marketing Stream in June. Amazon is developing data and marketing services, competing with internet ad giants like Google. The “marketing stream” sends real-time analytics to advertisers about how “sponsored products” ads are performing. Sponsored products mainly show up when consumers browse Amazon, and they have become an essential way for brands to get discovered.
Amazon’s advertising services led to $8.76 billion in revenue in the second quarter, an increase of 18% year over year.