AWS, which offers cloud computing and storage services to more than one million customers like Netflix and Airbnb, is a key reason for Amazon’s rare profitability this quarter.
Advertisement
Turnover also grew more than expected, up 19.3 % to 23.18 billion dollars (21 billion euro). Wal-Mart’s market capitalization on the same day was lower at $235 billion.
Synergy provides quarterly market sizing and segmentation data on cloud infrastructure services and related markets, including operator revenues by segment and by region.
Amazon’s beat-and-raise quarter inspired a host of Wall Street analysts to increase their price targets on Amazon stock.
“The teams at Amazon have been working hard for customers,” said Jeff Bezos, founder and CEO of Amazon.com. At the very least, a consolidation in Amazon’s stock price after its initial post-earnings spike would seem to be in the cards for the coming weeks.
“While pricing is certainly a factor we don’t believe it’s always the primary factor [in cloud adoption]”, Olsavsky said.
Seattle-based Amazon, which last reported a profit in the 2014 fourth quarter, has often faced worries by investors that its heavy spending on new ventures will not actually pay off. Amazon said that subscribers are growing rapidly outside the US as compared to inside.
Net income was $92 million in the second quarter, or $0.19 per diluted share, compared with net loss of $126 million, or $0.27 per diluted share, in second quarter 2014.
‘Few mega cap consumer internet companies can sustainably demonstrate accelerating revenue and margin expansion at the same time, and when it happens, it’s a magical trend that rightfully gets rewarded.’. “It surpassed all of our expectations”. The latest post-earnings pop measures about 18% in early readings, which is simply steepening an already steep slope for AMZN stock. The company enclosed the quarter with $10.23 billion in cash and equivalents. They argue that investors are not reacting according to the financial performance of companies.
Jefferies raised its price target to $730 – the highest on the stock – implying a 51 percent increase from Thursday’s close of $482.18.
Amazon has leap-frogged Walmart to become the most valuable retailer in the US following estimate-beating profit figures.
Advertisement
“Amazon, which is the UK’s leading online retailer and an Elite member of the a href=”http://www.apple.com/pr/library/2015/07/21Apple-Reports-Record-Third-Quarter-Results.html” onclick=”_gaq.push([‘_trackEvent”, “outbound-article”, “http://www.apple.com/pr/library/2015/07/21Apple-Reports-Record-Third-Quarter-Results.html”, “third quarter”]);” target=”_blank” *third quarter, to June 27.
