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).
Chloe and Halle Bailey are no strangers to hard work. The sisters got their start performing covers on YouTube and have become a force in the music industry. Since then, the two have spread their wings beyond their duo group to individual projects. Now they're coming together to face off in the LG OLED Ultimate Gaming Showdown. Chloe and Halle join Cheddar News to discuss.
Software giants Adobe and Microsoft are further partnering to build synergy between their productivity tools for the digital-first workplace. Ashley Still, the senior vice president and general manager of digital media at Adobe, talked to Cheddar about the common vision between her company and Microsoft for simplifying work. "It's really important that companies make sure that the tools and applications that employees have at their disposal make their work delightful and easier," Still said in terms of how to judge the success of the partnership.
Carlo and Baker wrap up another week discussing the latest explosion in new Covid cases in the Northeast, President Biden's stalled agenda and more. Plus, Love, Hate, Ate featuring the question: why did movie dialogue get so hard to understand?
'Unicorn Hunters' gives business owners the potential of reaching a billion-dollar valuation, but before they can get the capital they have to impress the 'Circle of Money.' Rosie Rios, former U.S. Treasurer and co-host of 'Unicorn Hunters,' joins Cheddar News to talk more about the show.
There's a new ETF designed to offer investors exposure to 'meme stocks.' Roundhill Investments launched it earlier this month and says the ETF is the first that is explicitly designed to track the performance of meme stocks. Roundhill Investments Vice President of Research Mario Stefanidis joins Cheddar News' Closing Bell to discuss.
