Investors of Amazon stock received a pleasant surprise recently when it was released that the Seattle-based retailer had reported net income of $79 million in Q3 of this year. In addition, the company beat their level of anticipated revenue by $500 million, leading to a 10 percent increase in Amazon’s stock price.
These numbers are a positive sign for investors considering the usual character of Amazon’s finances. As the company continues to grow and record increases in revenue year after year, Amazon chooses to keep investing. While this may be an effective allocation of resources in order to expand Amazon’s global footprint, shareholders have not been able to cash in. Things may be changing in their favor though, as Amazon has recorded gains in profits in 9 of their last 15 quarters.
With this years’ fourth quarter sales projected to rise between 14 and 25 percent from last years’ sales, outlook for Amazon remains bright. The company has added approximately 70,000 workers in the last year alone, and plans to add an additional 100,000 temporary workers strictly for the busy holiday season.
Amazon continues to out-innovate its competitors with Jeff Bezos at the helm, and with influence in the e-commerce, tech, and entertainment industries, Amazon is posed to become a star among the international players. The company has already established itself as a retail giant, and investors can only hope for profits that accurately reflect Amazon’s potential.