Amazon Will Be First Trillion Dollar Stock, Says Forrester Analyst
Amazon shares jumped after hours Thursday, after the company trounced earnings expectations for the second quarter.
The e-commerce giant posted profit of $5.07 a shareーmore than double estimates and compared to just $0.40 a year ago.
Driving that growth was the company's cloud business, Amazon Web Services, which saw revenue surge almost 50 percent to more than $6.1 billion.
But while Amazon remains the clear leader in the space, Forrester Research retail analyst Sucharita Kodali pointed out that the company can't rest on its laurels.
"The question is, does cloud just get commoditized and does that ultimately bring prices down and compress margins," she said. "Companies like Microsoft and others are not going to simply stand by and let Amazon just completely dominate the market. You will see innovation in the space, you will likely see very, very competitive offers."
Still, Kodali said she expects Amazon to ultimately beat Apple in the race to $1 trillion. She said one of the things the company has going for it, is its ability to beat expectations in almost any business it decides to enter.
"They now have a physical fulfillment business that competes with FedEx and UPS," she said. "They have a media business that competes with everyone from Netflix to HBO and Disney. Then, of course, they have their marketing business that competes with Google, and the AWS business that's competitive with so many of the large technology giants that are out there."
Shares of Amazon were up almost 4 percent after the earnings report. The company closed the day with a market cap of $904 billion, just behind Apple which was worth $958 billion.
For more on this video, [click here](https://cheddar.com/videos/amazon-jumps-on-promise-of-more-growth).
This holiday season, e-commerce sales are expected to hit 207 billion dollars, with17 percent of that chunk will occuring between the days of the deals - black friday and cyber monday. Deren Baker, CEO of edge by ascential, joins Cheddar News to give a Cyber Monday preview.
Zoom reported solid third quarter earnings, with a beat on revenue and EPS, but did warn of slowed growth as the pandemic wanes. For more on the company’s third quarter earnings and their innovation plans post-pandemic, Kelly Steckelberg, CFO, Zoom joined Cheddar’s Opening Bell to discuss.
Portion is the 21st-century auction house and collector’s community for rare high-end physical and digital art items. Whether you're a creator or a collector, Portion focuses on enabling users to flourish while offering a dependable marketplace to buy or sell NFTs. Jason Rosenstein, founder of Portion, joins Cheddar News to disucss.
According to recent data, Americans are pulling away from their television screens in a big way. In the last few months, people have returned back to more normal activities, spending time with friends and less time doom scrolling on Instagram, it's a favorite pastime. Licensed Psychotherapist and Author of "Disconnected" Tom Kersting, joined Cheddar to discuss more.
Over the years, vertical farming has seen a growing trend. The use of this technique allows growers to combine environmental and financial sustainability. While vertical farming is still a relatively young concept, one industry has been utilizing the technique, the cannabis world. As states across the country continue to legalize medical and recreational cannabis, more and more cannabis distributors are pivoting to vertical farms like one local black-owned hemp farm in Wilmington, Delaware.CEO and Co-founder of EternelHemp Michael Brown, joined Cheddar to discuss more.
One former employee at Sony Playstation has just filed a lawsuit against the company on allegations of gender discrimination and wrongful termination. According to Emma Majo, the company says she was terminated as a result of the company's decision to phase out a team she was only temporarily working with. Executive Director at International Game Developer's Association Renee Gittins, joined Cheddar to discuss more.
According to recent data from the American Gaming Association, U.S. Casinos have just experienced their best quarter ever, winning nearly $14 billion in the third quarter of the year alone. Reporter at The Nevada Independent Howard Stutz, joined Cheddar to discuss more.
Bitcoin has officially entered bear market territory. The cryptocurrency is down 20% from an all-time high of nearly $69,000 dollars, which it hit earlier this month. Experts mark the new potentially vaccine-resistant coronavirus variant as the reason for the dip. Patrick McConlogue, CEO of Overlin, joins Cheddar News to discuss.
Carlo and Baker cover the latest developments with the Omicron variant, and break down what we know and what we still don't. Plus, a relatively tame Black Friday, and more.
