Amazon's stock skyrockets toward $1,040 on strong earnings
Amazon CEO Jeff Bezos.David Ryder/Getty
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Thursday afternoon was tech earnings mania with Amazon, Alphabet, Intel, and Microsoft all both reporting earnings and beating expectations across the board.
- Google's parent company Alphabet beat expectations on third-quarter results, sending the stock popping after-hours. The company generated $27.77 billion in revenue, up 24% from a year ago.
- Intel beat analyst expectations in its third-quarter earnings report with revenue up 2% from the same quarter last year.
- Microsoft's fiscal first-quarter earnings beat Wall Street expectations on both the top and bottom lines. Shares in the company, which reported its results after the closing bell Thursday, inched up by almost 4% to about $81.75 in after-hours trading.
Amazon also just released its third-quarter earnings report. It reported:
- Revenue: Q3 2017 revenue of $43.7 billion, versus $42.19 billion expected. So that's a beat.
- Earnings: $0.52 a share versus $0.52 last year.
Amazon's revenue jumped 34% over the year-ago quarter. Investors are happy. Amazon's stock has jumped 7% in after-hours trading to about $1,037 a share.
That's better news than it saw in the second quarter, when the company missed Wall Street's expectations and its stock dropped. The e-commerce giant is ramping up investments in warehouses, content for its Prime Video streaming service, and investments in international markets and in groceries, following its $13.7 billion acquisition of Whole Foods earlier this year.
Amazon's all-important cloud-computing unit, Amazon Web Services, reported $4.6 billion in revenue, up from $3.2 billion last year. Wall Street has been concerned about slowing growth with AWS, but it's still growing well.
For its fourth quarter, a major one that includes the holiday shopping season, Amazon predicts net sales of $56 billion to $60.5 billion. So that's growth of 28% to 38% compared with the fourth quarter of 2016.
That forecast includes the impact from its acquisition of Whole Foods, and it also includes a favorable foreign-exchange rate. Operating income is expected to be anywhere from $300 million to $1.65 billion, compared with $1.3 billion in the fourth quarter of 2016.
Here's the full press release.
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