Amazon Surprises with Soaring Share Price

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!!!

Amazon Surprises with Soaring Share Price

By Lex Yaranu | Sunday, July 26th, 2020

A surge in pre-market trading on Friday for Amazon.com caught even some long time market watchers off guard. The online retailer reported the day before it received an unexpected second quarter profit and better revenue than projected. For those who wrote off shares in online retailers’ post-holiday season the net sales of $23.18 billion in the last three months up to June 30 th were astounding considering the $19.34 billion net sales for this time last year for the Internet retail giant.

While the 27% net sale upswing isn’t impressing trend spotters, at least not yet, it is good news for those interested in the online market operating at more than break-even levels. Amazon typically reinvests profits, but this demonstrates its ability to show profit after cutting spending.

According to online market watchers this could demonstrate to investors that if online retailers want to make profits it’s possible. According to Chief Financial Officer Brain Olavsky Amazon’s Prime delivery which took off slowly in popularity has in the last few taken off, and with added subscribers it’s proving as profitable as the company hoped.

Another contributor for Amazon’s weekend surprise for investors was an unforeseen rapid growth in Amazon’s cloud computing service called Amazon Web Service with sales that grew 81% from last year for 8% total quarterly revenue. Following on the heels of a 49% growth in the first quarter the once maligned decisions on Amazon’s shift of focus appears to be paying off. Other new launches such as Amazon Business have yet to see the same growth.

The giant makes these gains while facing some of the stiffest e-commerce competition in years, and while some investors have taken flight. Amazon wouldn’t comment on rival companies, only stating a determination to remain invested in securing a foothold and continue to attract customers.

Amazon sent a strong message to future investors claiming the company expects net sales to grow in a range of $23.3 -$25.5 billion. This is compared to analyst’s median projections of $23.9 billion. Shares of the company took flight to 18.21 in pre-market trade Friday hitting $570.00 by 09:44GMT.

Amazon Sees Soaring Share Prices Following Q3 Earnings Beat

SEATTLE, WA – The grocery business seems to be treating Amazon just fine. The company’s newly released Q3 financial report was met with much enthusiasm, with shareholders catapulting stock prices up nearly 8 percent. In the report, Amazon topped Wall Street expectations for revenue by just around $1 billion, as well as exceeding earnings per share expectations by a whopping 49 cents.

These wins came as a sweet surprise to many investors who expected Amazon to follow its usual suit of investing heavily back into its business during the third quarter, reports CNBC. Instead, earnings were bolstered by both a strong quarter for North American sales, as well as a push for its Amazon Web Services. This is was also the first quarter that represented sales from Amazon’s acquisition of Whole Foods, raking in $1.3 billion in sales.

Furthermore, the retailer has eyed new horizons for its Q4, considered by many to be its most profitable. Amazon has set expectations for net sales in Q4 to hit between $56 billion and $60.5 billion, or, in other words, grow between 28% and 38% over Q4 2020. Amazon said in a press release that this estimate includes approximately 1,000 basis points of impact to our year-over-year growth rate from its acquisition of Whole Foods Market.

All in all, Amazon’s report was filled with highlights, but according to Reuters, here are a few of the most notable:

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!!!

  • Revenue hit $43.7 billion versus $42.14 billion expected
  • EPS hit 52 cents versus 3 cents per share expected
  • AWS revenue was $4.58 billion versus $4.51 billion expected
  • Revenue increased 34 percent from last year, in part due to the $1.3 billion in sales from Whole Foods
  • North American sales were $25.4 billion, up 35 percent from last year
  • International sales grew 29% to $13.7 billion

As of 7:12 PM EDT yesterday, Amazon’s shares had risen 7.82% in after-hours trading, putting each share at a price of $972.43. By the end of the day, the company’s market cap was valued at $467.14 billion, according to Google Finance. According to CNBC, Amazon shares have grown 30 percent year-to-date.

This is just the beginning of what we will be sure to see from the new grocery-focused Amazon company, and AndNowUKnow will be keeping an eager eye on the retailer’s Q2.

Amazon Escapes Bloody Friday With 7% Gain as U.S. Declares National Health Emergency

Amazon’s stock price zipped past $2,000 on Friday after the company reported much better than expected earnings and sales for its holiday quarter.

Amazon’s share price went through the roof Friday after the company reported much better than expected quarterly results. | Image: AP Photo / Mark Lennihan, File

  • Amazon’s stock price zips past $2,000 on Friday, gaining as much as 9.9%.
  • The e-commerce giant reported much better than expected results for its holiday quarter, with sales and earnings crushing estimates.
  • As Amazon shares surged, the technology sector and broader U.S. stock market plunged.

Shares of Amazon.com (NASDAQ:AMZN) surged on Friday after the e-commerce giant’s quarterly earnings report blew past expectations – a sign that its investment in faster delivery times was already paying off.

Amazon Stock Blows Past $2,000

After gaining over 12.5% in after-hours trading on Thursday, Amazon’s stock price opened sharply higher Friday morning. AMZN peaked at $2,055.72 a share, up 9.9% from the previous day’s close. At its current pace, the stock is on track to set new all-time highs.

The stock would eventually settle at 2,008.72, having gained 7.4%.

The intraday rally pushed Amazon’s market capitalization back above $1 trillion, putting it in elite company alongside Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Google-parent Alphabet (NASDAQ:GOOGL) [VentureBeat].

By the end of trading, Amazon’s market cap stood at $996.92 billion.

Amazon was one of the only bright spots in the U.S. stock market on Friday. The technology-focused Nasdaq Composite Index plunged 1.6%. The large-cap S&P 500 Index was off 1.8%%, with losses spread out among ten sectors. Energy companies were the hardest hit, falling 3.2% on average.

U.S. equities crashed over fears of a worsening coronavirus outbreak. As Yahoo Finance reports, U.S. authorities have declared a national health emergency with Delta, American and United halting all flights to China.

Stellar Earnings Report

The catalyst for Amazon’s record breakout was a much better than expected earnings report on Thursday. The Seattle-based company generated $6.47 in per-share earnings on revenue of $87.44 billion for the quarter ended December. Analysts in a median forecast were calling for an EPS of $4.04 on revenue of $86.02 billion.

A deep dive into the numbers revealed another stellar quarter for Amazon Web Services (AWS), the flagship cloud offering. AWS generated $9.95 billion in revenue for the quarter, well above forecasts of $9.81 billion.

Amazon owns nearly half of the public cloud infrastructure market, according to Forbes, and is the de facto leader in the rapidly growing industry.

Amazon’s investment in one-day shipping also appears to be paying off, especially during the holidays when demand for faster delivery times is greatest. Amazon Prime – the program that offers one-day shipping – now has 150 million subscribers.

Beyond the obvious growth drivers, Amazon appears keen on growing its advertising business at a time when companies like Facebook are under the political microscope. As MarketWatch reports, sales in Amazon’s “other” category, which includes advertising, grew 41% year-over-year.

Disclaimer: The above should not be considered trading advice from CCN.com.

This article was edited by Josiah Wilmoth.

Last modified: February 2, 2020 4:07 PM UTC

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!!!

Like this post? Please share to your friends:
Binary Options Trading Guide
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: