Amazon just posted an insane earnings-per-share beat

Amazon just posted an insane earnings-per-share beat

Even more crucially, more people joined Prime on July 16 than on any previous day in the company's history, Amazon said. Wednesday that plunged its stock 19 per cent.

Amazon reported revenue of $2.2 billion for that category in the second quarter, up 129 percent year-over-year.

According to the research firm eMarketer, Amazon's e-commerce revenue will grow more than 28 per cent this year to reach US$394 billion, and will account for 49 per cent of United States online retail sales and almost five percent of all retail spending. The company's brick-and-mortar stores generated $4.31 billion in second-quarter revenue.

"It's now a multibillion-dollar business for us", he said on a call with analysts Thursday.

Amazon has grown into one of the world's biggest companies on its global e-commerce operations along with cloud computing, artificial intelligence, video, groceries and other operations.

Rising third-party sales are also helping increase profits, he said.

Popular brands now agree to put their inventory on sale for members of Amazon's loyalty club Prime, while rival retailers scramble to drive traffic back to their websites. Amazon sees its revenue for the period to be in the range of $54 billion to $57.5 billion, which is below what analysts are calling for in the range of $55.6 billion to $62.2 billion.

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Amazon's total costs increased almost 37 per cent in the three months ending in June to $49.9bn, as the firm invested heavily into its premium service Prime across its online video, warehouse and delivery infrastructure. Shares had slumped by 3 percent during the regular session, a move some attributed to investor caution toward high-flying technology companies after Facebook warned that its growth was slowing. The deal is expected to close later this year.

Saunders said in a research note that Amazon's success comes from the fact that "it innovates and tries new things like no other retailer. this heady pace of creativity is the key reason why it stays several steps ahead of the market and is able to generate so much growth". Its more than 100 million members globally spend above average amounts on Amazon, to get the most out of their subscriptions.

For the three months ending June 30, Seattle-based Amazon reported net income of $2.53 billion, or $5.07 per share, blowing past the $2.48 per share Wall Street analysts expected, according to FactSet.

Of the 48 analysts covering the stock, 46 have a "buy" rating, while only 2 rated it "hold".

The company, which originally started an online book seller in 1994, now gains revenue from selling products quite unrelated to its original business.

According to the research firm eMarketer, Amazon's e-commerce revenue will grow more than 28% this year to reach $394 billion, and will account for 49% of USA online retail sales and almost 5% of all retail spending.

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