Virtually everyone in our modern, tech-heavy world shops on Amazon’s digital interface, or has at least once, at some point in their lives. Those who can’t say this is true have probably visited the site just to “window shop,” to see what the multinational retail shopping giant’s Internet-based interface is like.
Amazon is doing incredibly well, and is likely to unveil a valuation of a whopping $700 billion. That’s truly amazing for any company, especially for the leader of all online shopping – none other than Amazon.
Let’s break this potential valuation increase down in terms that are easier to understand.
What’s Going On With Amazon’s Performance?
Shares of Amazon’s stock, trading as AMZN on the New York Stock Exchange and NASDAQ, are currently worth just South of $1,400 per share, nearly the highest stock share valuation in the company’s history. In after-hours trading between Thursday and Friday, its shares rose about 6 percent, likely due to increased trading activity resulting directly from investor confidence after seeing the company’s breakaway, standout earnings report.
In terms of the year of 2018, Amazon shares are up a whopping 19 percent, and are likely to continue the upwards-facing trend it’s been on for the past few years.
Amazon’s performance in the fourth quarter of fiscal year 2017 recorded higher quarterly profits than ever before, as well as posting revenue totals that were higher than they’ve ever been for the company.
In comparing the digital retail giant’s stock performance to the Dow Jones Industrial Average, the two have risen 19 and 6 percent, respectively. Both are extraordinarily high increases in value. Thanks to a positive financial outlook in the United States’ economy, both are expected to continue trending upwards throughout the first quarter of 2018, if not even further.
Alexa Is To Credit For A Great Deal Of Both Revenue And Profit Increases
Alexa, Amazon’s voice assistant device, is one of many such devices on the market. However, Alexa is currently the most popular such voice assistant in the United States.
Chief Executive Officer Jeff Bezos made public in a statement earlier this week that the company would “double down” on Amazon’s investment in Alexa, and plans to beef up its intellectual property for Alexa considerably as soon as possible.
Amazon Web Services, one of many subsidiaries under parent company Amazon’s wings, racked up a $20 billion annual run rate in the fourth fiscal quarter of 2017.