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)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Paul Carrel BERLIN (Reuters) - European Union sanctions against 40 officials in Belarus are "a small victory" but should be widened, opposition leader Sviatlana Tsikhanouskaya said on Monday, adding she would press Germany's Angela Merkel to do more at a meeting on Tuesday. Tsikhanouskaya fled her homeland for Lithuania amid a police crackdown in Belarus following an Aug. 9 presidential election, which official results said incumbent Alexander Lukashenko won, but which Tsikhanouskaya's supporters say was rigged
WASHINGTON (Reuters) - White House Press Secretary Kayleigh McEnany said on Monday she tested positive for COVID-19, while several U.S. media outlets reported that a number of other White House staff members also were confirmed to have been infected with the novel coronavirus
WASHINGTON (Reuters) - U.S.