With the end of the second quarter, Amazon is projected to reveal the gigantic profits it earned with the of the second quarter. Its contribution in higher margin businesses such as advertising, cloud, and third party marketplace has escalated its growth remarkably. Amazon Revenue As per Wall Street estimation, the end of second quarter has roughly gained approx. $1.2 billion. Thomson Reuters projects that the Amazon’s share is 40 percent up from that of last years. This estimation shows the growth is six times greater than that of last year and it is the third consecutive quarter to cross $1 billion of profits. The first time Amazon revenue reached the benchmark of $1 billion was in 2017.
Justin Post, an analyst at Bank of America, said that there are high growth prospects for Amazon for their higher margin businesses, that has resulted in the second quarter and it will continue to gain profits.
In the second fiscal quarter, e-commerce giant Amazon extended their Prime Members saving scheme to all their outlets of Whole Foods across the nation. Further, they have also expanded their Whole Foods delivery service in number of cities, including Huston, Chicago, and San Antonio.
Recently, Amazon also entered in health care sector by acquiring an online pharmacy named PillPack and have started a new service that will deliver packages directly to the customer’s car.
Apple and Amazon are running closely in terms of the market cap of $950 billion for Apple and $890 billion for Amazon as of Wednesday. Thus, to become the first company with $1 trillion, Amazon approx. needs 12 percent hike to attain it, which is dependent on Thursday’s strong earnings beat.