Amazon smashes expectations, share price surges
Ecommerce kingpin Amazon reported first quarter earnings for the year last week, smashing analysts’ expectations as its e-tail and cloud-computing businesses soared to new heights. As a result, the company’s share price climbed 4.7% in after-hours trading. Amazon reported earnings per share of $1.48 against Wall Street estimates of $1.12, and collected $35.7 billion in revenue against forecasts of $35.3 billion.
Amazon’s share price is up by over 22% year to date!
SOURCE: Yahoo Finance
Amazon’s incredible success in online retailing is coming at the expense of traditional brick-and-mortar operations, as big department stores have been closing doors in 2017. But the company is also beating out its rivals online: earlier this year, Slice Intelligence reported that Amazon was responsible for a massive 43% of all online sales in the U.S. (a number that is certainly growing). The company is also the global market leader (sans China, where Alibaba reigns supreme), and is making powerful moves to dominate international markets in the same way it dominates its domestic one (just check out its investments into Indian Ecommerce earlier this year!).
Amazon Web Services (AWS) also outperformed in the first quarter of 2017. Although, after its stellar run last year, analysts expected it to. The segment saw a 42% rise in sales from the year-ago quarter, equating to $3.66 billion. AWS is perhaps the most visible of the company’s heavily tech-focused operations (along with video gaming and more). And it’s swiftly becoming as fundamental part of the business as the more traditionally talked-about areas (Amazon Prime, Kindles and ebooks, etc.).
In related news this morning, Jeff Bezos is, apparently, now only $5 billion away from being the world’s richest man. With these results, it’s easy to see why.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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