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Amazon is primed for rapid growth

Amazon remains unstoppable.The company accounts for ...

Posted: Jul 26, 2018 10:38 AM
Updated: Jul 26, 2018 10:38 AM

Amazon remains unstoppable.

The company accounts for nearly half of all online retail sales in the United States. It continues expanding its brick-and-mortar retail footprint through Whole Foods, Amazon bookstores and new checkout-free convenience locations. And every new venture, from advertising to cloud computing to, perhaps soon, healthcare, almost invariably becomes a billion-dollar business.

Wall Street expects that dominance to continue when Amazon reports its second quarter earning results after the bell Thursday. Analysts expect Amazon's sales to top $53 billion for the three months ending in June, a 40% increase from the same period last year.

All of this growth comes as Amazon does something that once seemed unthinkable: it consistently turns a profit. Analysts expect Amazon to post earnings of $2.50 per share, up from 40 cents a year ago, even as the company continues investing heavily in fulfillment centers, new stores, and pricey content deals.

Canaccord Genuity analyst Michael Graham wrote in an investor note this month that Amazon has "the most robust and durable growth outlook" of any company in the FANG group, which he defines as including Facebook, Netflix and Google.

Amazon Prime remains central to that growth. More than 100 million people pay for Amazon's subscription service, which includes two-day shipping and access to a growing slate of TV shows and movies. During the quarter, Amazon raised the price of a Prime membership from $99 to $119 a year.

Related: Amazon made Prime indispensable - here's how

"Prime growth remains the key jewel for Amazon going forward," Daniel Ives, an analyst with GBH Insights, wrote in an investor note last week. Amazon moved quickly to capitalize on its $13.7 billion acquisition of Whole Foods to attract even more Prime subscribers with discounts and free two-hour deliveries.

And then there's Prime Day, the international shopping day held each year in July. Despite early technical glitches, this year's 36-hour sale was the biggest shopping event in Prime Day's four-year history and brought in a record number of new subscribers.

It's not just Prime, however. Amazon Web Services, the company's cloud computing business, dominates public cloud computing in the face of competition from Microsoft and Google. Its cloud service saw sales climb 50% to more than $5 billion in the first quarter, reinforcing its role as the linchpin of Amazon's profitability streak.

Amazon continues gaining momentum in advertising, too. The company's "other" category, said to consist "primarily" of advertising services, topped $2 billion in sales in the first quarter, more than doubling the year prior. "Amazon is seen as the alternative to Google and Facebook," according to analysts at Deutsche Bank.

These moneymakers let Amazon "invest as hard as ever while also delivering higher profitability," says Dan Morgan, senior portfolio manager at Synovus Trust.

Amazon threatens to match, or even eclipse, Apple's market value, which would make it the world's most valuable company. A strong earnings performance Thursday could help propel Amazon past Apple and put it on the path to becoming the first company to achieve a market capitalization of $1 trillion.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 479326

Reported Deaths: 9353
CountyCasesDeaths
Harrison32779484
Hinds30924582
DeSoto30319353
Jackson23542341
Rankin21235366
Lee14803219
Madison14120271
Jones13327223
Forrest13078236
Lauderdale11501303
Lowndes10377176
Lamar10163130
Pearl River9008217
Lafayette8193137
Hancock7404111
Oktibbeha6909122
Washington6900150
Monroe6459159
Neshoba6441201
Warren6387163
Pontotoc623093
Panola6203125
Bolivar6072144
Marshall6068121
Union571386
Pike5574135
Alcorn533289
Lincoln5283131
George466072
Scott454796
Leflore4444140
Prentiss443377
Tippah442180
Itawamba441599
Adams4376116
Tate4327101
Simpson4313112
Wayne430766
Copiah429587
Yazoo419686
Covington413292
Sunflower4123104
Marion4073104
Leake395486
Coahoma391098
Newton367274
Grenada3543104
Stone350359
Tishomingo333288
Attala324286
Jasper313162
Winston303091
Clay294173
Chickasaw286265
Clarke279890
Calhoun263940
Holmes261387
Smith248048
Yalobusha219647
Tallahatchie217550
Walthall209958
Greene206845
Lawrence205732
Perry198553
Amite197651
Webster195042
Noxubee177739
Montgomery171654
Jefferson Davis167442
Carroll161437
Tunica150834
Benton141533
Kemper138039
Claiborne126134
Choctaw126026
Humphreys125937
Franklin116328
Quitman103426
Wilkinson101536
Jefferson87333
Sharkey62320
Issaquena1926
Unassigned00

Alabama Coronavirus Cases

Cases: 778549

Reported Deaths: 13665
CountyCasesDeaths
Jefferson1105871747
Mobile704651206
Madison49152610
Baldwin35946479
Shelby35796302
Tuscaloosa33410532
Montgomery32906672
Lee22231216
Calhoun20791397
Morgan19605326
Etowah18837449
Marshall17465272
Houston16452368
St. Clair15233293
Limestone14376182
Cullman14348246
Elmore14241256
Lauderdale13298278
Talladega12699230
DeKalb12036233
Walker10430323
Autauga9568133
Blount9555152
Jackson9235146
Coffee8728169
Colbert8426179
Dale8410170
Escambia6526114
Tallapoosa6501172
Covington6396163
Chilton6293141
Russell598555
Franklin5719100
Chambers5315133
Marion4734115
Dallas4665182
Clarke457076
Pike456294
Geneva4315116
Winston417192
Lawrence4086108
Bibb401680
Barbour341968
Marengo323183
Butler314988
Monroe314652
Pickens300470
Randolph299955
Henry298356
Hale289383
Cherokee284652
Fayette275672
Washington244848
Crenshaw235168
Clay225163
Macon217657
Cleburne217149
Lamar192140
Conecuh179646
Lowndes170158
Coosa166432
Wilcox155736
Bullock147742
Perry136036
Sumter124136
Greene120142
Choctaw72826
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Fall has started off exactly as you would have anticipated and it looks like we should have a number of dry days still ahead, but this isn’t a permanent switch, because heat is pegged to return.
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