Amazon's Premarket Power-Up: Why Stock Is On Track To Hit Year's High

Amazon, Inc. AMZN shares spiked higher in premarket trading on Friday after the company reported a solid second-quarter beat.

The stock rose 8.99% to $140.50 in premarket trading, according to Benzinga Pro data. If the premarket gains hold good, Amazon could be on track to touch its highest levels since Aug. 18, 2022.

The e-commerce giant reported second-quarter net sales of $134.4 billion, up 11% year-over-year, with the North American sales rising 11% and the international segment reporting sales growth of 10%.

The quarterly results were ahead of the consensus estimates that called for earnings per share of $0.65 and revenue of $22.1 million.

The AWS cloud computing business saw sales growth of 12%.

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The company reversed to a profit of $0.65 per share from a loss of $0.20 per share a year ago.

For the third quarter, Amazon expects net sales of $138 billion to $143 billion, up 9%-13% year-over-year. The company modeled an operating income of $5.5 billion to $8.5 billion, up notably from the year ago's $2.5 billion.

Wedbush analyst Daniel Ives lauded the company for its strong results. “Amazon monster quarter and will be front and center for the tech sector. AWS [is] impressive and speaks to overall cloud tailwinds seen by Microsoft & Google,” he said.

Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating on Amazon and upped the price target from $145 to $160.

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