Amazon remains unstoppable.
Almost half of all online retail sales in the US are accounted for by the company. 19659004] Whole Foods, Amazon Bookstores and New Checkout-Free Convenience Locations. And every new company, from advertising to cloud computing and healthcare, is almost invariably a billion dollar business.
Wall Street assumes that dominance will persist if Amazon ( achieves results in the second quarter after the bell day. Analysts expect Amazon to reach $ 53 billion in revenue in the three months to June. This represents an increase of 40 percent compared to the same period of the previous year. )
All of this growth comes from the fact that Amazon is doing something that used to seem unthinkable: it's constantly making a profit. Analysts believe that Amazon has a profit of $ 2.50 per share, compared to 40 cents a year ago, although the company continues to invest heavily in fulfillment centers, new businesses and expensive content deals.
Canaccord genuity analyst Michael Graham wrote this month in an investor note that Amazon has "the most robust and sustainable growth prospects" of any FANG Group company he has considered Facebook () Netflix [ and ) Google (. )
Amazon Prime remains central to this growth. More than 1
Related: Amazon made Prime indispensable – this is how it goes
"Prime growth remains the most important jewel for Amazon," wrote Daniel Ives, an analyst at GBH Insights, last week in an investor note. Amazon took advantage of the $ 13.7 billion acquisition of Whole Foods to win even more Prime subscribers with discounts and free two-hour deliveries.
And then there is Prime Day, the international shopping day that takes place every year in July. Despite early technical disruptions, this year's 36-hour sale was the biggest shopping event in Prime Day's four-year history, bringing with it a record number of new subscribers.
However, it's not just Prime. Amazon Web Services, the company's cloud computing business, dominates public cloud computing in the face of competition from Microsoft ( and Google. The cloud service grew 50% to more than $ 5 billion in the first quarter, confirming its role as the linchpin of Amazon's profitability. )
Amazon continues to gain momentum in advertising. The "other" category of the company, which is said to be "primarily" advertising services, generated more than $ 2 billion in revenue in the first quarter, more than doubling. "Amazon is considered an alternative to Google and Facebook," said Deutsche Bank analysts.
These financiers have "made Amazon invest as hard as they can and at the same time increase their profitability," says Dan Morgan, Senior Portfolio Manager at Synovus Trust.
Amazon threatens to compare Apple ('s market value, or even surpass it, making it the most valuable company in the world would do. Thursday's strong earnings performance could help bring Amazon to Apple and get it to become the first company to reach $ 1 trillion in market capitalization. )
CNNMoney (New York) First published July 26, 2018: 12:02 ET