Amazon stock skyrockets after strong earnings in Q3

Amazon stock skyrockets after strong earnings in Q3

Amazon.com Inc sales jumped 34 percent in the third quarter and profit topped analysts' estimates as Prime Day sales boosted its retail business and demand remained strong for its popular cloud service for companies.

"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 five times since the same time past year". But some analysts believe the honeymoon between Amazon and the recently-acquired Whole Foods Market may be ending, with signs of a clash between the two corporate cultures beginning to emerge.

Excluding the impact of Whole Foods, net sales were up 29 percent, Amazon said. But Amazon Web Services' operating income was close to $1.2 billion, up from $861 million in the year-ago quarter.

Amazon who are now tipping millions moving into new markets including Australia, has seen their shares rise 7% after reporting a 35% lift in USA revenues and a 29% lift in worldwide sales. Plus, content and technology at Amazon continue to evolve, and several analysts noted the company's growth (and potential growth) via its connected devices and voice assistance. The Whole Foods deal includes 87,000 people who worked at the grocery chain, making up a big chunk of the employment growth this quarter.

The company is rapidly growing: It paid almost $14 billion this summer for organic grocer Whole Foods; announced a series of new voice-activated Echo devices; and kicked off a public hunt for a place to build its second headquarters. Third quarter operating income includes a $21 million contribution from Whole Foods Market.

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Neil Saunders, managing director of GlobalData Retail, says it's still too early to say whether the Whole Foods acquisition is a success story.

With numbers like these, it's no surprise Amazon stock traded higher in after-hours trading following the company's third-quarter earnings release.

As discovered by the website Voicebot.ai while using an Amazon Echo Show, the Jeopardy skill - based on the TV quiz show of the same name - has started offering a subscription model where users pay $1.99 per month to gain six extra clues each month. And reports that Mackey and other Whole Foods execs are scheduled to attend a retreat meant to bring them in line with Amazon thinking "could be an indication that integration is occurring at a slower-than-expected pace or that his tenure at the combined entity could be short-lived".

Amazon stock closed the day even at $972.43.

All that said, it is clear that Amazon's own online stores are no longer the star of the show.

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