World's largest internet retailer Amazon.com, Inc.’s (NASDAQ:AMZN) shares rose on strong quarterly results while shares of Starbucks Corporation (NASDAQ:SBUX) fell in pre-market activity on earnings that were below analyst estimates and lowered profit outlook for the current quarter.
Amazon's better margins were due to new businesses such as online marketplace for third party merchants and cloud computing, the company said on Thursday. Its shares rose 1.6 percent to $223.59 in after-hours trading.
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Amazon's gross profit was 26.1 percent in the second quarter, up from 24.1 percent a year earlier. Revenue in the quarter was $12.83 billion, up 29 percent from the year-ago period.
Product revenues including its traditional online retail business grew 25 percent to $10.79 billion while services businesses yielded $2.04 billion, up 57 percent from year-ago.
Moreover, the company’s gross margin improved by 2% to 26.10% from 24.10% a year earlier.
Shares of AMZN jumped over 1% in the pre-market session.
Seattle-based Starbucks's net income rose 19 percent during the quarter, earning $333.1 million, or 43 cents per share.
Total revenue rose 13 percent to $3.3 billion. Analysts had estimated profit at 45 cents per share on revenue of $3.34 billion.
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Revenue growth was led by sales in China and Asia, though its European sales remained flat.
Starbucks cut its profit outlook to 44 cents to 45 cents per share for the current quarter from a range of 46 cents to 47 cents per share. Analysts were predicting 48 cents per share.
Shares fell by $5.16 or 9.86 to $47.24 in pre-market session.