This is Why Amazon Shares Are Soaring This Morning

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Amazon's (AMZN) profits jumped in the second quarter despite sales falling short of Wall Street forecasts, topping $2 billion for the first time.

Amazon's profits trounced estimates as the retail giant reported a 12-fold increase in net income of $2.5bn (£1.9bn) for the second quarter.

The Amazon.com, Inc. exchanged hands with 3531307 shares compared to its average daily volume of 4.02M shares.

Meanwhile, the Seattle-based company reported adjusted earnings of $5.07 per share, crushing our $2.49 per share estimate.

On an earnings call, transcribed by Seeking Alpha, Amazon's CFO Brian Olsavsky said he expects AWS' growth to continue as a result of a strong pipeline. The company also slowed hiring and is filling positions on growing teams through internal transfers, he said.

One factor that reduces Amazon growth while boosting profit is rising sales from independent merchants posting their own inventory on Amazon's marketplace. "We're really pleased with the retail growth", Olsavsky said, "We think it's driven by the Prime program and the engagement of Prime customers as well as increased selection, particularly third-party selection". Second-quarter revenue was US$52.9 billion, slightly missing analysts' expectations, too. (NASDAQ:AMZN) news were published by: "Nasdaq.com which released: "Don't Consider Price When Looking to Buy Cheap Stocks" on July 25, 2018, also Bizjournals.com with their article: "Amazon soon will deliver its Lake Nona fulfillment center â€" the area's largest industrial project" published on July 23, 2018, Seekingalpha.com published: "Microsoft Soaring To All-Time Highs" on July 26, 2018. With a market value of $916.97 billion, Amazon is racing with Apple Inc and Alphabet Inc to be the world's first trillion-dollar public company.

"We want customers to be able to use Alexa wherever they are", said Bezos. Wall Street had projected $US2.49 a share, but those numbers might not be comparable; Amazon posted a per-share profit of $US0.40 in the second quarter previous year. Amazon launched Prime member savings at Whole Foods Market stores nationwide, offering Prime members 10% off hundreds of sale items and discounts on popular products.

Focus on Trump's meeting with European Commission President Juncker - Deutsche Bank
In return, "the European Union is going to start, nearly immediately, to buy a lot of soybeans ... from our farmers", Trump said . "Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs".

Technical indicators do not lead us to assume the stock will see more gains anytime soon.

Amazon's momentum has been strong enough to sustain Twitter broadsides from U.S. President Donald Trump, who has accused Amazon of freeloading off the U.S. Postal Service and using the Washington Post as a lobbying tool against antitrust criticism. Those efforts include snagging more well-known brands to selling their wares on Amazon.com, a steady increase in private label fashion products available in the USA, and the nationwide rollout of Amazon Wardrobe, a service that allows Prime members to choose up to 8 items for users to try on at home for 7 days until Amazon charges the user.

Synergy claims that the overall spend on cloud infrastructure services is now more than $16bn per quarter.

Hiking the annual US price of Prime 20 percent in the second quarter appeared to have few negative consequences: Amazon said subscription revenue increased 57 percent to $3.4 billion.

Amazon will capture almost half of all online spending in the US this year, according to EMarketer Inc. Bezos is trying to convince investors that he can replicate that USA dominance overseas. Excluding the $760 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 37% compared with second quarter 2017.

Just over half of Amazon's revenue came from online sales, while 11 percent came from Amazon Web Services.

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