Amazon.com, Inc (NASDAQ:AMZN) Making A Impact In Overseas Market
Amazon.com, Inc (NASDAQ:AMZN) has made quite an impact in the overseas market and on Friday, its shares rose 9.39% to close at $363.39. It also reported a very strong revenue performance. This was an indication of a major forward momentum in the largest retailer in the world even as the very important holiday season approaches. Analysts and market watchers are saying that this is slated to be the slowest season in years.
EBay Inc (NASDAQ:EBAY), Amazon.com, Inc (NASDAQ:AMZN)’s rival announced a very dismal forecast last week and said that the economic environment in the United States is low and so is consumer confidence. To a certain extent this has been due to the government shutdown. Amazon.com, Inc (NASDAQ:AMZN) has projected sales of $23.5 billion -$26.5 billion, which analysts are saying are very conservative. A leading analyst said that the macro environment in the Q$ is going to be very difficult. However, with the way things stand at the moment, the revenue might just be able to maintain some gusto moving into the Q4.
Strong home market
Most of the revenue growth has come from the company’s home market where there was a 31% surge in net sales to $10.3B. Amazon.com, Inc (NASDAQ:AMZN) said that the company had expanded its fulfillment center network and that helped in faster delivery and boosted customer demand. There was also a 15% rise in international sales in comparison to the 13% from the previous quarter.
The company is trying to transition from being just an online trader to being a broader tech company. It is doing this by offering gadgets such as tablets to its customers and also catering to governments and larger companies with its cloud computing services. Amazon.com, Inc (NASDAQ:AMZN) is spending billions of dollars in expansion efforts and that has had an impact on its earnings. However, investors believe that even as margins expand and the tapering is brought into effect, this move will eventually pay-off.