Investing.com -- Amazon rose in after-hours trade Thursday, but soft guidance for the second quarter reined in gains after better-than-expected first-quarter earnings.
Amazon.com (NASDAQ:AMZN) rose 1.7% in after-hours trade, after closing flat at $1,918.66.
Amazon gave second-quarter operating income guidance of $2.6 billion to $3.6 billion, below estimates from Capital IQ of $4.19 billion. Revenue estimates of $59.5 billion to $63.5 billion were in line with estimates from Capital IQ of $62.42 billion.
"This guidance anticipates an unfavorable impact of approximately 150 basis points from foreign exchange rates," the company said in a statement.
The e-commerce reported earnings of $7.09 a share, handily beating expectations from Investing.com for earnings of $4.71 a share, while revenue was line with expectations of $59.73 billion in revenue. That was also in-line the range of the guidance the company provided in January, for net sales of $56 billion to $60 billion.
The above-consensus earnings were led by its cloud computing - known as Amazon Web Services, or AWS.
AWS grew sales 41% for the quarter to $7.67 billion, though that was a slower rate of growth than the 49% rise in sales quarter-on-quarter from a year earlier.
Revenue from third-party sellers – who paying to promote their products on Amazon.com – increased by 20% to $11.14 billion. The higher revenue from third-party sellers comes as Amazon has longed been accused of competing directly with the sellers on its platform.
Advertising, its other fast-growing business line, saw growth slow to 36% to $2.72 billion for the quarter, after growing at least 60% in the past five quarters.