CFD stocks – Amazon earnings due

Amazon’s stock has touched a fresh all-time high, just as the Dow Jones and S&P 500 broke new ground. The firm’s recent Prime Day was its busiest ever, with global orders up 60% from a year before in a sign that its dominance in the online retail market is no longer in doubt.

The firm’s share price has doubled this year on strong cloud computing earnings and rapidly expanding Prime membership. If you’d bought Amazon stock a year ago you would be rewarded with a 74% gain.

Amazing Amazon

 

The Prime delivery offering is a clear winner and ensures its crown as the top online retailer in the UK and US. Original content via Prime is on the up and the Amazon Web Services platform is booming – growing two-thirds in a year.

High street retailers have lost to Amazon and now it’s taking the online grocery market seriously it could also prove a serious competitor for the big supermarkets, which are engaged in a destructive price war.

Morgan Stanley reckons its grocery and clothing categories could provide a 26% boost to growth in the US. This would be on top of the staggering growth in AWS – which grew 64% from Q1 2015 to Q1 2016 and generated $2.6bn in revenue in the first quarter.

Amazon is now the fifth largest US company by market cap, after breezing past Warren Buffett’s Berkshire Hathaway last week. It wouldn’t take much more of a rise in Amazon and perhaps another slump in oil prices for the firm to knock Exxon Mobil off fourth place.

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Amazon Earnings

 

Investors are now looking ahead to the company’s earnings release, due out on Thursday, July 21st. 

In its Q1 report, the firm smashed expectations. It recorded its fourth straight profit with sales up 28%.

Q1 net income came in at $513 million, for an EPS of $1.07, on revenue of $29.13 billion. This was double the expected 58 cents. A year before it posted a loss of 12 cents per share.

So can we expect another massive earnings beat and more gains for its stock? It’s probably less likely this time as EPS forecasts are above $1. A stellar set of figures has already largely been priced in.