Amazon (NASDAQ: AMZN) surged higher by 10% following its second-quarter earnings report, but it might be the conditions of that gain that make the surge so notable. Amazon did not rise because of its earnings; it reported a quarterly loss and fell short of estimates on a key metric.
However, successes in other areas made it easier for investors to overlook bad news. That changed perception could become a significant catalyst for Amazon stock as it works to recover from the bear market.
On the surface, Amazon's earnings seem uninspiring. Net sales of $121 billion beat estimates of $119 billion and grew 7% from year-ago levels. Nonetheless, net losses of $2 billion, or $0.20 per share, fell well short of the $0.13 net income that analysts had expected.
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Amazon Stock Shrugged Off Bad News: Here's What That Means for Investors