Amazon's Q3 2018 earnings

Amazon's Q3 2018 earnings

Amazon's Q3 2018 earnings

The pay boost should help the company quiet its critics, who have complained about its treatment of warehouse workers, while also allowing Amazon to draw in and retain more workers just ahead of the holidays during a tight labor market. This is pretty impressive considering Amazon's primary North American retail segment pulled in over $34 billion in sales yet AWS booked just shy of $6.7 billion!

As well, Amazon expanded its Prime Video product with new original shows, launched its Prime Book Box to all of its US-based Prime customers, setup shop in Turkey, improved Alexa, and much, much more.

Amazon's total operating expenses increased 22 per cent to US$52.9 billion in the third quarter.

The logo of Amazon is seen at the company logistics centre in Boves, France, August 8, 2018. Its not getting much attention but the unit has grown 123 percent YoY and this business is perhaps the highest margin in the entire Amazon stable.

The company posted third-quarter earnings per share of $5.75 on net income of $2.9 billion, topping expected earnings per share of $3.14, according to Refinitiv data. "Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organizations in eight countries", Bezos said in a statement.

"This guidance anticipates an unfavorable impact of approximately 80 basis points from foreign exchange rates", the press release said.

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There were no ratings downgrades from the Wall Street analysts who have nearly universally backed the companies' long-term prospects, but several said there were signs that both were beginning to face tougher competition from tech peers as well as the retail companies Amazon has bullied in recent years.

That was less than forecast, and investors were also disappointed at Amazon's predictions for revenue and profit in the busy period leading up to Christmas. Operating income was $3.7 billion; analysts had expected only $2.1 billion.

Amazon is quickly morphing into a "profit machine", writes Anthony Chukumbo, a senior analyst at Loop Capital.

While Amazon is still struggling to turn a profit for its overseas web retail operations, the losses there are getting smaller.

"With consumer sentiment and employment rates near 18-year highs and ongoing store closures in the USA, we believe Amazon's strong retail sales growth will continue through the balance of the year and beyond", the analyst added.

"Make no mistake, Amazon remains a behemoth in the online market - nor do we believe it is under any serious threat", Saunders said.

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