blog-headBy: Daniel Audunsson

Amazon Exceeds Investors’ Expectations With 2018 Q2 Earnings Report

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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.”


Source: CNBC/Domo

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


[+] TechCrunch

[+] Forbes

[+] CNBC

[+] Learn to sell on Amazon with our Infinity Code program