Amazon beats estimates, Wall Street breathes sigh of relief
By Noel Randewich and Saqib Iqbal Ahmed SAN FRANCISCO/NEW YORK (Reuters) - Wall St breathed a sigh of relief on Thursday after Amazon.com's quarterly results beat estimates, sending the online retailer's stock to a record high and alleviating fears of deepening troubles across the FANG group after Facebook's results sent its shares reeling.
By Noel Randewich and Saqib Iqbal Ahmed
SAN FRANCISCO/NEW YORK (Reuters) - Wall St breathed a sigh of relief on Thursday after Amazon.com's
A 19 percent plunge in Facebook shares
Facebook late on Wednesday warned about a margin hit as revenue growth slows and user privacy costs climb.
The social network's dismal forecast followed a disappointing report by fellow FANG company Netflix
"Even though we had a bump in the road with Facebook and Netflix, we're not derailing the tech story," said Synovus Trust portfolio manager Daniel Morgan after Amazon's report. "It's a huge sigh of relief."
Following its upbeat report after the bell, Amazon's stock rose 3.2 percent to a record high $1,866, more than making up for a 3 percent loss during Thursday's trading session.
As Amazon expands into grocery retail through its acquisition of Whole Foods Market last year, and as more businesses move their IT departments onto its cloud infrastructure, its stock price has been red hot. Amazon recently traded at 110 times expected earnings, compared to more-profitable but slower growing Apple's valuation of 15 times earnings.
Amazon's stock market value has surged more than 50 percent in 2018 and is now above $900 billion, closing in on Apple's $955 billion market capitalisation.
(Graphic: Big Five Market Cap - https://reut.rs/2JUqwpy)
In its report, Amazon forecast operating income of between $1.4 billion and $2.4 billion for the third quarter, beating analyst estimates of $843 million. The Seattle-based company's total net sales rose 39 percent to $52.89 billion, missing the average analyst estimate of $53.40 billion.
(Graphic: Big Five Revenue - https://reut.rs/2LDAy3f)
"Since Amazon hit $1,000 a share, we've taken some money off the table, but we're not selling today," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "Of all the tech companies, Amazon to me is the most vital. It's the one with the brightest future."
(Reporting by Saqib Iqbal Ahmed; Editing by Meredith Mazzilli and Sandra Maler)
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By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.