Amazon.com (AMZN) Stock: Gaining On Strong Earnings

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Amazon.com, Inc. (NASDAQ: AMZN) is having an overwhelmingly strong start to the trading session in the pre-market hours this morning, and for good reason. The company reported earnings for the most recent quarter, blowing away expectations. Of course, this excited investors, sending the stock toward the top and prompting our partners at Trade Ideas to alert us to the movement. Currently (8:38), AMZN is trading at $1053.00 per share after a gain of $80.57 per share or 8.29% thus far today.





AMZN Announces Strong Earnings

As mentioned above, Amazon is having an overwhelmingly strong start to the trading session this morning after reporting earnings for the third quarter. Generally, the third quarter is a heavy investment period ahead of the holiday season, so growth isn’t all that strong during the quarter. However, that didn’t prove to be true this time around. While the company did it’s late-year spending, strong sales in North America and increased revenue from AWS offset this spending, leading to an incredible quarter for AMZN. Here’s what we saw:




  • Revenue – In terms of revenue, AMZN did overwhelmingly well. During the third quarter, it was expected that AMZN would generate revenue in the amount of $42.14 billion. However, the company actually reported revenue in the amount of $43.7 billion, not only beating expectations, but doing so by more than $1.5 billion.
  • Earnings Per Share – When it comes to earnings per share, AMZN definitely did not disappoint. During the quarter, analysts expected that the company would generate $0.03 per share. However, the company actually reported earnings in the amount of $0.52 per share, once again blowing away expectations!
  • Amazon Web Services – On the Amazon Web Services side of the coin, news got even better. During the quarter, analysts expected that Amazon would generate $4.51 billion in AWS revenue. However, the company actually reported AWS revenue in the amount of $4.58 billion. This is the company’s key driver of growth. In fact, AWS revenue jumped by 42% in the quarter.
  • Q4 Guidance – Finally, AMZN provided guidance for the fourth quarter. The guidance proved to be right in line with analyst expectations. During the fourth quarter, the company expects to generate between $56.0 billion and $60.5 billion. At the moment, analysts are expecting that the company will generate revenue in the amount of $58.9 billion.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on AMZN. In particular, we’re interested in following the continued growth of AWS. The company also saw compelling revenue driven from Whole Foods, and we’re interested in watching this as it continues to expand. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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