Amazon Exceeds Investors’ Expectations With 2018 Q2 Earnings Report
On Thursday, July 26, Amazon reported its Q2 earnings and unsurprisingly exceeded investors’ high mid-year expectations.
According to Amazon [R], net sales increased by 39% to $52.9 billion in Q2, compared to $38 billion in Q2 of 2017. Quarterly earnings were at $5.07 per share (and shares rose by 2% on Thursday night, after this report was made). Analysts expected Amazon to report earnings of $2.48 per share [R]. And at the close of trading on Thursday, “Amazon stock was up 79 percent in the last year and 59 percent in 2018 alone” [R].
Revenue from third-party sellers on FBA rose 36% to $9.7 billion [R].
These exciting results come after Jeff Bezos became the richest person in modern history [R], and 2018’s Prime Day event yielded a striking 100 million products sold and likely about $1.5-2 billion in revenue for the retailer [R].
Some might call this unstoppable Amazon expansion frightening, while others believe it to remarkable and truly the best time to invest in this ever-expanding business. Amazon is currently capturing nearly half of all e-commerce sales in the US [R] as competitors like Wal-Mart refuse to fall too far behind, strategizing on how to catch up [R].
Amazon’s market value may soon even exceed Apple’s, making it the “world’s most valuable company.”
It’s quickly on its way to becoming the first $1 trillion company. According to a recent poll of institutional investors at the 8th Annual Delivering Alpha Conference in New York, 70% of respondents said Amazon would reach the $1 trillion milestone before Apple and Alphabet [R].
How exactly will Amazon continue to surprise us in Q3? That’s something we’re pretty eager to find out.
UPDATE: on August 2nd, 2018 Apple crossed the 1 trillion dollar market cap.
Resources & References
[+] Amazon
[+] The Street
[+] US News Money
[+] MarketWatch
[+] CNBCTV
[+] TechCrunch
[+] Forbes
[+] CNBC
[+] Learn to sell on Amazon with our Infinity Code program
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