Thanks to its recent addition of cloud services, Amazon has been able to top their Wall Street projections and is currently on pace to shatter their expectations for the entire quarter.
The company has been able to ride a newfound wave of retail sales and is also enjoying an influx of new customers, thanks to their streaming services, which have been modeled after Netflix. The online retail giant’s Amazon Web Services cloud unit is the company’s fastest growing sector and is expected to drive growth in the months and years to come.
Industry analysts have been stunned by Amazon’s ability to crush the estimates and stock shares have risen to a record high. According to Forbes, Jeff Bezos, the chief executive of Amazon has now become the third wealthiest person alive, surpassing Warren Buffett.
The low expectations were a result of the major investment required to launch the new Amazon services. The average estimate for Amazon share prices from analysts was $1.11 per share, but Amazon shattered these expectations by earning $1.78 per share in the second quarter.
Amazon’s share prices are expected to grow in the coming months, as they add warehouses, fulfillment centers and employees to gear up for the holiday season. The company is also slated to invest heavily in creating new video content for its streaming service and accelerate their growth even further.
North America is the company’s largest market and sales rose over 28 percent, reaching a whopping $17.6 billion in net sales over the last quarter. The current quarter’s net sales have also been bolstered by sales from the company’s annual Prime Day, which is one of the nation’s most commonly frequented online shopping festivals.