Why I love Amazon digital credit and digital thermometers
Amazon stock has been rising on a run of strong earnings.
The company on Friday reported a 23% rise in adjusted earnings per share, compared with a loss of 7% for the year to end-March.
That’s better than analysts’ consensus of a 7% gain.
Amazon said its revenue grew 21% to $8.7 billion in the quarter, compared to $6.4 billion for the previous year.
That was the first increase in the past three quarters.
Amazon shares have surged more than 20% in the last three months.
Amazon has more than quadrupled in value since its IPO in 2015.
Investors are still wary of Amazon, with some seeing the stock’s stock price as a speculative play that can’t deliver long-term value.
But analysts are not buying it.
Amazon’s stock is still trading at a low price of $7.99, well below its peers.
Amazon is a very young company that has had to scale rapidly in order to compete with companies like Google and Facebook.
The stock’s growth comes amid a slowdown in online shopping and an influx of mobile commerce.
Amazon is trying to make up for lost ground in the online market by expanding into more traditional retailing and providing consumers with the tools to shop for goods online.
The digital thermometry stock is a way for Amazon to show that it’s not just a digital shopping store, analysts said.
It also gives the stock a positive valuation because of its growing business and the strength of its digital business, which is about 10% of Amazon’s revenue.