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

Use Amazon Alexa to control your Dish Network box.                  Dish Network

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, 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.

U.S. not ready to engage Haqqani network: Asif
Solution to Afghan crisis is not in coercive methods but talks, Asif said adding that Pakistan did not succumb to U.S. pressure in the past 2 months.

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.

Related News:

Most liked

Second T20I: Pakistan wins toss, opts to field against Sri Lanka
The first T20 will begin at Sheikh Zayed Stadium in Abu Dhabi on Thursday on 09:00 pm as per Pakistan Standard Time (PST). But several Sri Lanka players won't be there.

Chance Of Snow Amid Rainy Wednesday Morning
Partly cloudy, with a low around 35. - Monday continues the warmup with a high near 61 degrees and a low of 37 overnight. Lows may drop into the teens and 20s in the region Friday and Saturday night , the coldest air of the season so far.

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.

ICICI Bank second-quarter profit falls, but bad loans stable
Yes Bank said the net impact of the retrospective slippages has been reflected in the results for the quarter ended September 30. The bank said that it has exposure to 18 accounts that are part of a second list of defaulters compiled by RBI.

Khloé Kardashian Just Showed Off Her Bump in New York City
They are just waiting for the right time to move forward. "Marriage is definitely on the cards". Looking back, Khloe Kardashian said there are some aspects in their lives they regret sharing.

Man locked in beer cooler overnight drinks beer, arrested
The store is open 24 hours, so Van Ert would only have had to knock on the glass to be rescued by an employee. Gramza said Van Ert is now in the Wood County Jail on a probation hold from an unrelated case.

Kellogg's says they will replace racially insensitive Corn Pops box
It also happened to be the only corn pop in all blue, and appeared to be waxing or scrubbing the mall's floors. Kellogg's says the new artwork will reach stores soon. "We did not intend to offend - we apologize".

Vincent D'Onofrio Returning as Wilson Fisk in 'Daredevil' Season 3
But without Fisk, or indeed any entity, puppeteering the operation, there was a general lack of villainous direction in the show. Based on his role in season 2, we figured Fisk would be back in Daredevil season 3, but it's great to hear that confirmation.

Patriots linebacker Hightower to miss rest of season
Despite shopping himself around the free agency market, Hightower returned to New England for $35 million and four years. If he does indeed miss Sunday's game, Hightower would likely be replaced at middle linebacker David Harris .

League expects Kaepernick to be invited to meeting with players
The meeting will take place 16 days after Kaepernick filed a grievance against the National Football League owners for collusion. Kaepernick's campaign began previous year , but reached a fever pitch when President Trump weighed in recently on Twitter.

Bad Rabbit Ransomware Attack Is On The Rise
As ever, there's a time limit in which the user must pay up, following the expiry of which the amount demanded increases. Bad Rabbit joins WannaCry and GoldenEye in a string of cyberattacks that have struck over the past year.

Apple acquires New Zealand-based wireless charging company
Apple has also said it would introduce a charging gadget that would let users wirelessly charge these iPhones, their Apple Watch, and AirPods.

Albertsons Companies Now Offering Apple Pay Across All Stores
Apple Pay is now at more than 50 percent of all retail locations in the USA , including 67 of the top 100 United States retailers. Cue said the company desires to bring its Apple Pay mobile payments service in India.

Cuomo bans vaping e-cigs indoors in public places
Andrew Cuomo has signed a bill into law putting the curtailment on new and old nicotine conveyance systems. That means e-cigarettes are now banned in any place in which smoking tobacco products are banned.

The Apple Inc. (AAPL) Raised to "Buy" at the Vetr Inc
It's nice to see that Apple is already confirming that its retail stores will have at least some iPhone X stock to go around. A survey by brokerage firm Bernstein concludes that the demand for the iPhone X would be substantial but not exceptional.