The stock market was looking a little sickly Wednesday, which makes Amazon.com’s rally all the more impressive. In recent trading, shares of the online retailer were up 4.7% to $224.19.The session is a microcosm for the prior quarter, where Amazon bucked an economic slowdown to post stellar second-quarter results, featuring a whopping 51% year-over-year increase in revenues.
At 41 cents per share on revenue of $9.91 billion, Amazon’s results handily beat Wall Street estimates, as did the company’s third-quarter revenue guidance. The firm’s operating income guidance was a disappointment but, for now, the company is being given credit for investing aggressively in the Kindle, more distribution centres and tactical acquisitions.
Citing Morgan Stanley analyst Scott Devitt, Om Malik notes Amazon is on a similar growth path as Wal-Mart was 20 years ago. A more modern comparison might be Apple, which similarly produced blockbuster results in a soft economy. (See: Running Out of Words to Describe How ‘Awesome’ Apple Is)
As Henry and I discuss in the accompanying video, Apple and Amazon appear more than ever to be on a collision course as they, along with Google and Facebook, battle for consumers’ hearts, minds and wallets.
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