قالب وردپرس درنا توس
Home / Business / Will Amazon's winning streak continue?

Will Amazon's winning streak continue?



  Is Amazon a monopoly?

For the first time in its history, Amazon made a $ 1 billion profit in the last quarter. Thursday afternoon we'll see what it's going to do to do that.

The company played a role this year. Amazon has reached new milestones for its stock price, paying subscribers, cloud computing sales and even profits ̵

1; something that seemed unthinkable for the company.

The results of the last quarter have contributed to a long and impressive winning streak that has made investors faint.

We'll see if this winning streak will continue when Amazon announces its first quarterly result after the Clock Tower.

The company expects to see very strong sales growth driven by the acquisition of Whole Foods and the continued appeal of its online retail and cloud computing businesses.

Analyst consensus estimates for Amazon ( AMZN ) indicate that $ 49.9 billion in revenue will be generated in the first three months of 2018, almost 40% of it a year earlier.

Amazon CEO Jeff Bezos announced last week in a shareholder letter that there are now more than 100 million subscribers to Prime, a $ 99 annual membership program that offers shipping benefits and streaming video.

Related: Amazon and Jeff Bezos Are at the Top of the World

Amazon Web Services, the company's cloud computing company, now has an annual turnover of $ 20 billion, Bezos wrote in the same letter.

And Amazon continues to take bold, if controversial, steps to innovate in retail. Amazon recently opened a supermarket with no checkout lines and launched a new service that delivers packages to car trunk for free.

But Amazon's profit is expected to shrink. The consensus estimate that Amazon will earn $ 1.24 per share, compared to $ 1.48 a year ago.

Amazon invests heavily in fulfillment centers, data centers and original programs. It is rumored that the company is ready to spend $ 1 billion on a single TV series.

For years, Amazon switched between anemic profits and steep losses as it reinvested earnings into the company's growth. If Amazon returns to this strategy and profits shrink, it could unsettle investors.

On the other hand, Amazon's profits can benefit from tax reform. Michael Pachter, an analyst at Wedbush, wrote in a statement to investors this week that "favorable tax laws" could eventually lead to better than expected Amazon earnings.

If so, this would mean that the legislation pushed by President Donald Trump could spur on a company that he has repeatedly attacked in recent weeks, with the threat of antitrust control and stricter regulations.

The daily broadsides of Trump shaved Amazon's market value by tens of billions of dollars.

Despite all the noise, analysts generally see Amazon on the regulatory front better than tech peers like Google ( GOOGL ) and Facebook ( FB ) which may be subject to an investigation into its privacy in the aftermath of the Cambridge Analytica scandal.

As Ross Sandler, an analyst at Barclays, writes this month in an investor note, Amazon is the "best house in a bad neighborhood".

CNNMoney (New York) First published April 26, 2018: 1:33 pm ET


Source link