The brown Amazon packages landing on doorsteps are starting to throw off plenty of green.
Amazon shares ended the regular U.S. trading session in the red Thursday but perked up after-hours, once the tech behemoth released its second quarter earnings report.
Younger, higher-earning businesses, including cloud computing and advertising, along with a July event the company created to drum up sales during the summer shopping lulls, are helping Amazon overcome high costs in the third quarter.
The company said it now expects third-quarter sales of between $54 billion and $57.5 billion, up from $43.7 billion a year earlier. Much of the retailer's success, according to the company, stemmed from continued growth in its Prime subscription service, as well as its cloud computing business, known as Amazon Web Services. Facebook Urges Companies to Work Together Against Data Leaks. "They've invested significant dollars in building out the infrastructure, sales force and AWS partner ecosystem worldwide that I think now is starting to pay just massive dividends".
In prepared remarks about the quarter, founder and CEO Jeff Bezos focused on Alexa, the company's voice-powered service.
Snapshot: On Thursday, Shares of Amazon.com, Inc., (NASDAQ: AMZN), performed -2.98 percent and closed at $1808 in the last trading session.
The stock exchanged hands with 9378623 numbers of shares contrast to its average daily volume of 3.98M shares.More news: Palestinian teenager jailed for slapping soldiers leaves prison
Revenue soared 39 per cent in the second quarter, but missed analysts' expectations.
Internationally, Amazon had an operating loss of $494m. Quarterly profit at Amazon topped the threshold of $1 billion for the first time during the 2017 fourth quarter. Amazon's "other" revenue, which is largely comprised of ad sales, grew a whopping 132% in the quarter to $US2.2 billion. In percentage terms, that's the slowest growth for the first half of the year since the depths of the financial crisis in 2009. Chief Financial Officer Brian Olsavsky said 2017 investments in warehouse and data-center efficiency are lifting profit this year. Amazon.com's revenue was up 42.9% on a year-over-year basis. equities analysts predict that Amazon.com will post 12.69 earnings per share for the current fiscal year.
At least 16 brokerages raised the price target on the stock with several saying that the high levels of profitability may be a new normal for the company. Last quarter, Amazon's AWS unit saw its revenues surge 48% from $3.66 billion to touch $5.44 billion.
Amazon boxes are seen stacked for delivery in the Manhattan borough of New York City, U.S., January 29, 2016.
Amazon said Thursday that it earned$2.5 billion in profit for the three months ending in June, a staggering jump from the $197 million it posted in the same period previous year.
The report offered few details on the Whole Foods grocery chain Amazon acquired past year, which has become increasingly integrated into its retail strategy.
In a report on its financial results for the second quarter ending on June 30, Amazon said its net income increased to 2.5 billion dollars, compared with 197 million dollars in the same period a year ago.