November 20, 2017, 1:31

Amazon shares soar as earnings beat expectations

Amazon shares soar as earnings beat expectations

Shares of Amazon soared Thursday after the online retailer posted earnings that far surpassed Wall Street expectations.

The Seattle company is rapidly growing: It paid nearly $14 billion this summer for organic grocer Whole Foods; announced a series of new voice-activated Echo devices; and kicked off a public hunt for a place to build its second headquarters.

Amazon reported net income of $256 million, or 52 cents per share, for the three months ending Sept. 30. That easily beat the 2 cents per share analysts had expected, according to FactSet. Amazon has long been known for investing the money it makes back into its businesses, such as opening new warehouses to fulfill orders. Many seemed to expect that again.

Revenue rose 34 percent to $43.47 billion, beating the $41.58 billion analysts expected. The company said net sales included $1.3 billion from Whole Foods Market, which Amazon acquired on Aug. 28. After taking over Whole Foods, Amazon slashed prices, added its logo on signs and set up a stand of “farm fresh” Amazon Echo voice-assistant devices by store entrances.

Founder and CEO Jeff Bezos touted the popularity of its devices, pointing out that it launched five new voice-activated devices in the last month. “Customers have purchased tens of millions of Alexa-enabled devices,” Bezos said.

Shares of Amazon.com Inc., which are already up 30 percent this year, rose nearly 8 percent to $1,047.73 in after-hours trading.

The results come a day after it announced a service called Amazon Key that will let people get their packages delivered inside their front doors.

Amazon is also sorting through 238 proposals from cities and regions that want to land the promised 50,000 new jobs and construction spending of more than $5 billion of a second headquarters. The company plans to announce a decision sometime next year.

Sourse: abcnews.go.com

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