Amazon Shares Hit Record High As Profit Tops $2 Billion For First Time

Amazon boxes are seen stacked for delivery in the Manhattan borough of New York City. Photo: REUTERS/Mike Segar

By Sweta Singh, International Business Times

Shares of Amazon.com Inc (AMZN.O) rose 4 percent to hit an all-time high after the online retailing giant’s quarterly profit topped $2 billion for the first time, powered by its best operating margin in 13 years.

Wall Street analysts cheered the broad-based strength in the results and overlooked the retailer’s decision to tap the brakes on its blazing revenue growth for plump profits.

[post_ads]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.

Brokerage Oppenheimer made the most aggressive move, raising its price target on the stock by $380 to $2,130, going past the median target of $2,100.

“What we’ve been waiting on for many years is finally happening, meaningful margin expansion,” Macquarie Research analysts said in a note.

Amazon Web Services (AWS), which handles data and computing for large enterprises in the cloud, remained the cash cow for the Seattle-based company and generated about 55 percent of its total operating income.

Amazon’s results were also a relief for distressed investors in the U.S. technology sector, still woozy from a nosedive in Facebook Inc’s (FB.O) shares following a profit warning earlier in the week.

“In this messy earnings season, AMZN stands out as one of the strongest performers,” SunTrust analysts said.

“Broad-based strength suggests to us AMZN is hitting that elusive margin leverage tipping point investors have been awaiting, driven by AWS and advertising.”
[post_ads_2]
The company, which originally started an online book seller in 1994, now gains revenue from selling products quite unrelated to its original business.

Of the 48 analysts covering the stock, 46 have a “buy” rating, while only 2 rated it “hold”.

Amazon’s stock price has increased more than 54 percent since the start of the year. With a market value of $916.97 billion, Amazon is racing with Apple Inc (AAPL.O) and Alphabet Inc (GOOGL.O) to be the world’s first trillion-dollar public company.

COMMENTS





Name

Business,743,Careers & Education,3,Investing,14,Markets,10,Money,4,Personal Finance,4,Real Estate,4,Small Business,15,
ltr
item
Business - U.S. Daily News: Amazon Shares Hit Record High As Profit Tops $2 Billion For First Time
Amazon Shares Hit Record High As Profit Tops $2 Billion For First Time
https://4.bp.blogspot.com/-gMA_ov_wZ0k/W12eNvuXarI/AAAAAAAA1vc/vqV-vYv8jOAWVHSUSz-JyE6OiTlEwe30gCLcBGAs/s1600/1.jpg
https://4.bp.blogspot.com/-gMA_ov_wZ0k/W12eNvuXarI/AAAAAAAA1vc/vqV-vYv8jOAWVHSUSz-JyE6OiTlEwe30gCLcBGAs/s72-c/1.jpg
Business - U.S. Daily News
https://business.dailynews.us.com/2018/07/amazon-shares-hit-record-high-as-profit.html
https://business.dailynews.us.com/
https://business.dailynews.us.com/
https://business.dailynews.us.com/2018/07/amazon-shares-hit-record-high-as-profit.html
true
8288295252483019008
UTF-8
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy