Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Amazon Pushes Further Expansion, Shares To Rise

Published 03/06/2018, 10:16 AM
Updated 03/09/2019, 08:30 AM

Amazon.com (NASDAQ:AMZN) shares, which have been on a bullish run in the past couple of months is expected to continue in the coming trading sessions. This is due to the company’s continuous announcements that expand its operations and creating a more positive outlook on its growth in terms of both earnings and market value.

Over the past months, Amazon has been projected to become a $1 trillion company in terms of market value numerous times. Amazon owner Jeff Bezos which is now one of the richest people in the world recorded a net worth of more than $119 billion by January this year. By the beginning of the year, Bezos has also personally earned $20 billion compared to his overall earnings of $35.1 billion just last year.

Shares of Amazon then have recorded a 20% rally during the beginning of the year and was up by more than 30% just a week ago leading Amazon closer to expectations of the e-commerce company becoming a $1 trillion company soon.

Amazon’s earnings have also exceeded expectations for the past two quarters. Following the acquisition of Whole Foods Market (NASDAQ:WFM) for $13.7 billion last year, losses were expected to be posted by the company. However, Amazon was still able to deliver earnings instead of losses which pushed the valuation of the company higher.

Whole Foods Expansion

Amazon has recently announced that it is planning to offer delivery from its recently acquired Whole Foods business for Prime members in areas such as Atlanta and San Francisco. These reports came from representatives familiar with the said matter who also added that Amazon intends to expand the said service in four other cities as well.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The company has started offering deliveries from its grocery business since last month from markets such as Virginia Beach, Cincinnati, Austin, and Dallas. Amazon Prime members in the said customers were able to avail the two-hour delivery for free,

Currently, Amazon reportedly is planning to expand the said service feature on a nationwide level. While some of the said plans have yet been officially confirmed by Amazon, the company has already rolled out other features such as Amazon Prime Visa card which offers a 5% back at Whole Foods. Amazon has also reportedly been in touch with J.P. Morgan Chase in launching checking-accounts which will help users without bank accounts to easily shop at their online platform. This would largely address the issue of a huge percentage of users not being able to shop at the website due to the absence of a credit card.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.