Amazon lost $2.03 billion (£1.6 billion), or 20 cents (16 pence) per share, in the three months to June 30 due to a 3 $.9bn (£3.2bn) of the value of its equity investment in electric vehicle start-up Rivian Automotive.

That compared to a profit of $7.78bn (£6.4bn) a year ago. It posted a loss of $3.84bn (£3.15bn) in the first quarter of this year, its first quarterly loss since 2015, which was also marred by a large writedown of Rivian.

Analysts had expected a profit of 12 cents last quarter, according to FactSet.

But Wall Street was cheered by Amazon’s $121.2bn (£99.5bn) in revenue, beating expectations of $119bn (£97.7bn). The results came as the company tried to cope with changing consumer demand and rising costs, while reducing the glut of warehouses it had acquired during the Covid-19 pandemic.

Shares of Amazon.com Inc rose nearly 14% in after-hours trading.

Chief Executive Andy Jassy said in a statement that Amazon is seeing revenue accelerate as it invests in its Prime membership and provides more member benefits, such as its recent deal to provide free access to the service. Grubhub meal delivery for a year.

Between 2019 and 2021, Amazon nearly doubled the number of warehouses and data centers it leased and owned to meet growing consumer demand.

But as consumers changed their habits, Amazon ended up with too many workers and too much space, adding billions in additional costs. The company has sublet some of its warehouses, terminated some of its leases and postponed the construction of others to deal with the problem.

Amazon Chief Financial Officer Brian Olsavsky said on a media call Thursday that the company is slowing its expansion plans for this year and next to better align with customer demand.

He said the company also plans to redirect its capital investments to its AWS cloud computing unit.