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Amazon shatters earnings expectations

ICE Graveyard 28/07/2016 Katie Roof

Amazon shattered expectations when it reported second quarter earnings after the bell on Thursday. Adjusted earnings per share came in at $1.78, when Wall Street was forecasting $1.11. Amazon also beat revenue predictions, posting $30.4 billion for the quarter when analysts were expecting $29.55 billion.

In a statement, CEO Jeff Bezos touted the early success of their Indian business. “The team in India is inventing at a torrid pace, and we’re very grateful to our Indian customers for their welcoming response.”

Amazon tends to make a lot of experimental bets. They’ve had early traction with their Alexa voice-activated personal assistant device. And they have also built up momentum in their Amazon Web Services division, providing storage and cloud services for many large businesses.

The company has built up a robust Prime business, where users pay annual subscriptions to get faster shipping and access to content like movies and music. Notably, Amazon created its own discount holiday last year called Prime Day. The sales day generated significant traction this year and will be included in next quarter’s earnings.

Other Amazon experiments have missed the mark, however. They did not find success with their Fire Phone and the company recently shut down their Gilt Groupe competitor, MyHabit.

Going forward, the company is betting that drone deliveries will cut down on costs and improve efficiency. Amazon is also expanding its grocery delivery business.

The stock is up 43% in the past year. The company has a market cap of $355 billion.

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