Amazon overtakes Walmart as record profits make it a $250 billion firm

The web giant reported an 19.9 percent rise in quarterly revenue, helped by higher sales in North America, its biggest market, and continued growth in its Amazon Web Services unit.

Popular Articles

  • After-hours trading saw stock price leapt by over 14% to more than $550
  • Added more than $30bn to Amazon's market value, to above $250 billion
  • Walmart's market value ended the day's trading just above $230 billion
  • Prime Day helped drive 18% more sales than last year's Black Friday

 

Amazon.com is now worth more than Walmart after a surge it its stock price following record results.

The web giant reported an 19.9 percent rise in quarterly revenue, helped by higher sales in North America, its biggest market, and continued growth in its Amazon Web Services unit.

The rise caused shares jump $83.96, or 17 percent, to $566.14 in aftermarket trading, pushing it past Walmart in terms of market value, and adding $7bn to the $34.7bn fortune of founder Jess Bezos in less than 45 minutes. 

BIGGER THAN WALMART

During after-hours trading, Amazon's stock price leapt by over 14% to more than $550 a share after the company reported strong quarterly earnings results. 

That added more than $30 billion to Amazon's market value, pushing it above $250 billion.

Walmart's market value ended the day's trading just above $230 billion.

However, Walmart’s annual sales, $486 billion last year, continue to dwarf Amazon’s $89 billion 

The company reported a profit of $92 million, or 19 cents per share, for the second quarter ended June 30, compared with a loss of $126 million, or 27 cents per share, a year earlier.

Revenue rose to $23.19 billion from $19.34 billion. 

Online retailing currently accounts for only 7% of US retail sales. 

This sent its shares up 17.5 percent in extended trading.

Last week, Amazon offered sales for one day to members only. 

Amazon said the Prime Day promotion helped drive 18 percent more sales than last year's Black Friday - typically the busiest day in retail. 

The company also said it got hundreds of thousands of new signups from its Prime Day promotion.

The second-quarter results do not include revenue from that day. 

Amazon also forecast third-quarter revenue above estimates.

 

Sales in North America, its biggest market, rose 25.5 percent to $13.8 billion in the second quarter from a year earlier, helped by strong demand for electronics and general merchandise.

Cloud-computing revenue soared 81.5 percent to $1.82 billion, accounting for nearly 8 percent of second-quarter revenue, the company said on Thursday.

The company forecast net sales to grow 13-24 percent to $23.3 billion-$25.5 billion in the third quarter, well above the average analyst of $23.89 billion, according to Thomson Reuters.

Amazon estimated an operating loss of $480 million to an operating income of $70 million for the third quarter.

During after-hours trading, Amazon's stock price leapt by over 14% to more than $550 a share after the company reported strong quarterly earnings results. That added more than $30 billion to Amazon's market value, pushing it above $250 billion. Walmart's market value ended the day's trading just above $230 billion. However, Walmart’s annual sales, $486 billion last year, continue to dwarf Amazon’s $89 billion.

During after-hours trading, Amazon's stock price leapt by over 14% to more than $550 a share after the company reported strong quarterly earnings results. That added more than $30 billion to Amazon's market value, pushing it above $250 billion. Walmart's market value ended the day's trading just above $230 billion. However, Walmart’s annual sales, $486 billion last year, continue to dwarf Amazon’s $89 billion.

Amazon reported a profit of $92 million, or 19 cents per share, for the second quarter ended June 30, compared with a loss of $126 million, or 27 cents per share, a year earlier.

Revenue rose 19.9 percent to $23.19 billion.

Analysts on average had expected a loss of 14 cents per share and revenue of $22.39 billion.

Amazon's shares were trading at $566.56 after the bell. 

The stock closed at $482.18. 

During after-hours trading, Amazon's stock price leapt by over 14% to more than $550 a share after the company reported strong quarterly earnings results, pushing its market value past Walmart.

During after-hours trading, Amazon's stock price leapt by over 14% to more than $550 a share after the company reported strong quarterly earnings results, pushing its market value past Walmart.

Amazon shares have climbed 55 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 2 percent. In the final minutes of trading on Thursday, shares hit $482.18, an increase of 44 percent in the last 12 months. 

'The teams at Amazon have been working hard for customers,' said Jeff Bezos, founder and CEO of Amazon.com. 

'We unveiled Amazon Business, opened Amazon Mexico, launched Prime free same-day, rolled out our ninth Prime Now city, broke our Black Friday record with the first-ever Prime Day, received 11 Emmy nominations for Transparent, debuted six new kids pilots, brought Echo to general availability, introduced the Alexa Skills Kit and Alexa Voice Service, opened FBA Small and Light, continued to double down on our fastest growing geography - India, launched 350 significant AWS features and services so far this year (ahead of last year's pace), introduced AWS Educate, and entered into agreements for new solar and wind farms - enough to exceed our 2016 goal of 40% renewable energy.'

The firm is even investigating delivering goods via drone in the future

The firm is even investigating delivering goods via drone in the future

It recently announced a major change to its book payment system.

The success of e-books on Amazon will no longer be determined by how many times they are downloaded.

From 1 July, authors will be paid based on the number of pages customers read in each of their respective books.

Amazon said the changes are in response to author feedback and are designed to reward stories that are well-written, gripping and that keep customer's interested. 

Larry White
By Larry White 23/07/2015 20:30:00