Amazon.com Inc forecast strong fall sales and posted a profit that was double Wall Street targets on Thursday thanks to the retailer's younger, higher-earning businesses, including cloud computing and advertising.
Shares rose more than 3 percent in after-hours trade. The report may come as a relief to investors in the U.S. technology sector, still reeling from a profit warning by Facebook Inc (FB.O) Wednesday that plunged its stock 19 percent.
Amazon’s report shows how the world’s largest online retailer has increasingly learned to compensate for the high costs of fast package delivery and video streaming, which it has marketed around the globe to huge success. It was the first mover in the business of selling data storage and computing power in the cloud, a bet that continues to pay dividends and give it the leeway to invest in grand projects.