Amazon sales shatters estimates as stay at home trends boost sales

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(Reuters) – Amazon.com Inc (AMZN.O) beat Wall Street estimates for quarterly revenue on Thursday and forecast current-quarter sales above expectations as the coronavirus crisis drove a surge in shopping on its platform and boosted demand for its cloud services.

Shares of the company, which have surged about 65% this year, were up 4% at $3,177.75 in extended trading.

Online retailers have seen a spike in demand as stay-at-home orders due to the COVID-19 pandemic resulted in less brick-and-mortar shopping.

The company forecast net sales of $87 billion to $93 billion for the third quarter. Analysts on average were expecting revenue of $86.34 billion, according to IBES data from Refinitiv.

Amazon’s cloud services also saw strong demand as companies switched to virtual offices due to the spread of the pandemic. Revenue from Amazon Web Services (AWS), which sells data storage and computing power in the cloud, surged nearly 29% to $10.81 billion.

Net sales rose to $88.91 billion in the second quarter ended June 30 from $63.40 billion, beating estimates of $81.56 billion, according to IBES data from Refinitiv.

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