Amazon (AMZN) reported earnings after the bell on Thursday. Revenue beat expectations, however the company suffered a net loss of $2 billion. The stock rose 12% in after-hours trading.

The revenue expectation of $119.53 billion was beat by the actual number of $121.2 billion. Earnings per share was -$0.20 vs the $0.52 expected. Amazon Web Services net sales were $19.74 billion versus $19.4 billion expected. The company increased its guidance for next quarter from $126.5 to $125 billion to $130 billion.

In a statement following the report’s release, Andy Jassy, Amazon CEO, said, “Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network.” 

Amazon attributes its net-loss to its investment in electric carmaker Rivian. Rivian shares have lost 68% year to date. CNBC has reported that Amazon’s Rivian losses add up to more than $11 billion year to date.

Cloud revenues rose year over year, however the sector is presently in flux. Microsoft saw cloud revenue from its service, Azure, rise 40% year over year when it reported earlier in the week.

James Lee and Wei Fang, analysts at Mizuho Securities, however have postulated that fears over a recession may cause corporate clients to pull back on expenditures on cloud services. In a July 20th note they postulated that could hurt Amazon’s Web Services.

Given Thursday’s GDP numbers, the data on a recession doesn’t look positive.