Amazon Now Takes on Apple in the Race to $1 Trillion with Their Stock Price Hitting Record High

Amazon Now Takes on Apple in the Race to $1 Trillion with Their Stock Price Hitting Record High


Amazon have hit a record high on Friday after the global online retailer went on to post really strong earnings for the second quarter, then what was actually expected and also said that their cost-cutting in an aggressive fashion along with the business having higher margin would go on to deliver forecast, which is going to break the profits up during the summer months.

Amazon disclosed that their earnings for the three months, which ended in June had been at $5.07 per share, which was more than twice the consensus forecast of $2.48 and went up from a mere 40 cents a share in the last year over the same period. The group sales have shown an improvement with the rise of 39% to $52.89 billion. This figure had just fallen short of the forecast made by the experts in the Street.

They expect to see their net income, for the quarter ending in the month of September to be somewhere between $1.4 billion and $2.4 billion, which will age be quite comprehensively ahead of the forecasts made by the analysts of close to $840 million. This is partly due to their cloud computing business, Amazon Web Services, which has high margins.

Amazon’s CFO, Brian Olsavsky said that the strong growth of the company in last some of the quarters, which include the very last quarter, have been because of their businesses offering the high amount of profitability as well as advertising.

The shares of Amazon got marked higher by 3.26% in the first half an hour of trading and had gone on to change hands at $1866.93, which was an all-time high leading to an extension of the year-to-date gain for the stock to around 59%, with the total valuation for the group a little over $910 billion.

One of the most valuable companies in the world, Apple Inc. is set to report their third quarter’s earnings for this fiscal on 31st July. Their shares were marked at $194.88 each, up by 0.35%, hence valuing the company at around $950 billion.