Amazon.com posts below-forecast second-quarter earnings as operating expenses jump on increased Prime delivery costs

Amazon.com Inc (NASDAQ:AMZN) saw its shares drop in after-hours trading as the e-commerce giant posted below-forecast second-quarter earnings as its operating expenses jumped on increased delivery costs for its Prime members.

The world’s biggest online retailer saw its net income rise to $2.63 billion, or $5.22 per share for the quarter ended June 30, up from $2.53 billion, or $5.07 per share a year earlier, but below analysts’ expectations of $5.57 per share,

Amazon’s net sales increased by about 20% to $63.40 billion in the second quarter, beating estimates of $62.48 billion.

But the tech firm’s operating expenses jumped by about 21% to $60.32 billion as it invested $800 million in the quarter in its one-day delivery program for Prime members.

The company forecast net sales in the range of $66 billion and $70 billion for the third quarter, with analysts currently expecting revenue of $67.27 billion.

In extended trading, Amazon shares were down over 2.5% at $1,923.90.

Story by ProactiveInvestors