Amazon just released their last quarterly earnings for 2017 and they have exceeded all predictions. As soon as the news broke, the Amazon stock jumped several percent. And Amazon was not the only company that performed well, another tech giant also experienced a major increase during after hours due to a similar quarterly report.
Amazon’s revenue for the last quarter was estimated at $59 billion which the company exceeded with $1.5 billion landing at a total of $60.5 billion. There are three major reasons why Amazons quarterly report is so strong.
- The main reason Amazon performed so well in the last few months can be traced to their cloud platform. AWS (Amazon Web Service) is currently Amazon’s most valuable asset and its incredible expansion is the single key component to why Amazon managed to outperform all expectations.
- Another major factor was increased Christmas revenue. According to the company CFO, Christmas season was better than anyone had expected for the company and it is clearly showing off.
- The third reason is the new tax bill that was recently passed in the United States. Apparently, Amazon experienced benefits of about $780 million due to the new taxes.
When the numbers were released the Amazon stock gained momentum and it ended up jumping more than 6% in after-hours trading. All in all, the Amazon stock has grown by over 70% in the past 12 months.
What will happen with Amazon in the coming year?
Jeff Bezos has made it clear that he is impressed with the company’s cloud platform as well as Alexa and that will remain a big focus for the company over the coming year. On top of that, Amazon’s management is very happy with how well Whole Foods has been performing since the merge in mid-2017, and we are expecting to see big developments on that front as well.
Amazon is not alone with great revenue
Apple also performed exceptionally well during the last quarter even though the iPhone X was considered a major international flop. In total, the Apple revenue outperformed estimates with a bit over $1 billion, landing on $88.3 billion instead of the estimated $87.28 billion. Apple experienced all of these increases despite the fact that the company sold fewer iPhones than expected over the time period.
The impressive earnings made the Apple stock jump over 3% in after-hours trading before settling at 173, 5 above 168 at closing on Thursday.