Amazon's stock is skyrocketing after a blockbuster post-Whole Foods earnings

Aside from the company's takeover of Whole Foods, which has shaken the grocery industry on both sides of the Atlantic, Amazon has made a number of new developments in the most recent quarter.

The results at Amazon defied most expectations that it would be investing close to all earnings in new areas as it has during much of the past.

As usual, the company's profits were relatively small - $256 million, or 52 cents per share, nearly flat with the third quarter of previous year as it ploughed money back into the business.

Amazon's third annual Prime Day shopping bonanza occurred in July, with sales growing 60 percent from previous year.

For its third quarter ended September 30, 2017, Amazon.com said that net sales increased 34 percent to 43.7 billion dollars and includes 1.3 billion dollars from Whole Foods Market, which Amazon acquired on August 28, 2017.

"We think we'll also be developing new store formats, " he said.

"Over time, you will see more cooperation between Amazon Fresh, Prime Now and Whole Foods as we explore new ways to serve the customer", Brian Olsavsky, Amazon's chief financial officer said in a Thursday evening call with analysts.

Key to success at Amazon has bene signing up more customers for its club Amazon Prime, which is its video streaming and fast shipping segment, whose members usually buy more from the online giant.

Canalys: India overtakes U.S. to become second largest smartphone market
Samsung and Xiaomi shipped 9.4 million and 9.2 million units respectively and accounted for nearly half of the total market. Samsung is reported to receive almost 30 percent growth year-over-year, while Xiaomi increased shipments by 290 percent.

Revenue from subscription services, like Prime and digital media, rose 59 per cent to $2.4 billion.

Amazon's stock immediately jumped, hitting an after-hours high of $1,054.99 a share.

Investors have continued to give a pass on Amazon's laser-thin profits.

For its guidance, Amazon expects net sales between $56 billion and $60.5 billion for the fourth quarter, and operating income between $300 million and $1.65 billion. Analysts on average were expecting $1.5 billion, according to data and analytics firm FactSet. Amazon had almost 542,000 employees at the end of last month, about 160,000 more than it had the year before.

Short believes that Whole Foods' food innovation cycle is likely to slow as the two companies further integrate, and that if Whole Foods becomes more like conventional food stores, may even come to a halt, while competitors - most notably Trader Joe's - continue to become more innovative.

Driving the revenue growth was AWS sales which rose 42 per cent year-on-year to $4.58 billion.

It also brings the business model around Alexa skills a little closer to a mobile commerce type of model, where developers can charge extra for certain in-app products or features - in this case a subscription to additional content. Amazon has given other compensation over the a year ago to encourage Alexa skills development, though.

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