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The shares of the company Amazon are becoming cheaper but the profit and volume are growing

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The shares of the company Amazon are becoming cheaper but the profit and volume are growing

The shares of the company Amazon are becoming cheaper but the profit and  volume are growing
October 28
09:00 2016

Amazon.com Inc. has released its financial results for the third quarter of 2016. Thus, the net profit for the three months (July- September) has been found to be $ 252 million that means $ 0.52 per share. Quantum leap of the company can be seen if we look at the figures published last year. The net profit for the same three months of last year amounted to $ 79 million, i.e. $ 0.17 per share.

Despite this significant increase, the shares of Amazon fell by 5.7% on October 27. This paradox is explained by the fact that the experts (the survey was conducted by Thomson Reuters) evaluated the company’s net profit converted to one share at $ 0.78. It is this discrepancy between the forecast and actual figures caused quite a significant drop in the value of shares.

In general, the company’s revenue has increased to $ 32.7 billion (29%) for the past three months. However, as the retail company invests in the development of services and expansion of the portfolio of the offered products, the costs also have risen by 29%.

A significant proportion of the spent money was used for the development of its own aircraft fleet – the company has got its first cargo Boeing. Web Services (virtual servers, etc.) turned out to be a successful subdivision of Amazon; last quarter its revenue increased by 55%.

The season of Christmas and New Year holidays is coming up that is a golden time for retail companies. The company’s experts estimate its future quarterly revenue at $ 42- $ 45.5 billion. The experts’ consensus forecast confirms the assessments made within the company, fixing the revenue forecast at the mark of $ 44.6 billion.

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1 Comment

  1. Terry Brown
    Terry Brown October 28, 17:40

    Amazon.com Inc has made a great success as it has become the world’s largest online retailer. It is engaged in the sale of goods, enjoying the massive demand. There is an interesting fact that the Amazon Company started its career with providing the only opportunity – purchasing books. Will it manage to survive in our uncertain times?

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