Technology

Amazon shares pass $1000 after posting strong financials

Google+ Pinterest LinkedIn Tumblr

Amazon shared third-quarter earnings after the bell on Thursday.

The company posted significantly better-than-expected earnings, at 52 cents per share, when analysts were forecasting just three cents. Shares quickly ticked up 7 percent in initial after-hours trading, to above the $1,000 per share milestone.

Revenue came in at $43.74 billion, versus the consensus estimate of $42.14 billion. This is also 34 percent higher than last year. The Whole Foods acquisition, which was completed in late August, accounted for $1.3 billion in sales for the quarter.

Revenue for Amazon Web Services (AWS) was $4.57 billion, versus the $4.51 billion expected.

Amazon says its fourth-quarter guidance will be in the $56 billion and $60.5 billion range, which is comparable to Wall Street estimates.

Amazon founder and CEO Jeff Bezos credits the success of its popular voice-activated device, Alexa. “In the last month alone, we’ve launched five new Alexa-enabled devices, introduced Alexa in India, announced integration with BMW, surpassed 25,000 skills, integrated Alexa with Sonos speakers, taught Alexa to distinguish between two voices, and more. Because Alexa’s brain is in the AWS cloud, her new abilities are available to all Echo customers, not just those who buy a new device,” said Bezos in a statement. “And it’s working — customers have purchased tens of millions of Alexa-enabled devices, given Echo devices over 100,000 5-star reviews, and active customers are up more than 5x since the same time last year. With thousands of developers and hardware makers building new Alexa skills and devices, the Alexa experience will continue to get even better.”

Shares closed Thursday at $972.43, but quickly jumped to more than $1,000. The company has a market cap of $467 billion.

Featured Image: Mark Wilson/Getty Images

John Hudgens

John lives in San Francisco, California and writes about politics and technology with his spare time. For his day job he builds backend applications for websites.

Write A Comment

%d bloggers like this: