Amazon.com, Inc. (NASDAQ:AMZN) released its earnings on Thursday which were well above what analysts were expecting. Revenues of $51.04 billion were above the $49.78 billion that was estimated and earnings per share came in at $3.27, which were also much higher than estimates of $1.26.
The company continued to do well with Amazon Prime as subscription revenues were up 60% from last year and it recently announced that it had over 100 million members paying for its service. On a related note, the company announced that its Prime rate would be rising to $119, which will further help grow sales in that segment.
Amazon continues to show investors why its stock is valued at such a high premium as it continues to find ways to beat expectations and achieve incredible growth. The company has ventured into so many different industries that it would be wrong to call it just a tech stock anymore.
Amazon has recently been rumoured to be looking at offering checking accounts for consumers, which could give it yet another segment to grow its sales.
In the past year, its share price has risen more than 60% and these strong results will propel the stock even further up in price. In pre-market trading the stock had already reached $1,650.
How much higher Amazon can go at this point is the big question, and $2,000 doesn’t seem unreasonable anymore after Thursday’s strong results. There’s no doubt investors are paying a premium for Amazon’s stock, but the company is proving why it is worth it.
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