Amazon.com, Inc.(NASDAQ: AMZN) stock surged over 7.4% in the pre-market session on October 27th, 2017 (as of 5:08AM EDT ; Source: Google finance) post their positive third quarter of 2017 update.
They delivered a Net sales growth of 34% on a yoy basis to $43.7 billion for the third quarter of 2017 while this includes $1.3 billion from Whole Foods Market. Amazon acquired whole foods on August 28, 2017.
Amazon launched five new Alexa-enabled devices in September 2017. They also launched Alexa in India, while integrated with BMW. Jeff Bezos, Amazon CEO discussed the response of Alexa wherein customers have purchased tens of millions of Alexa-enabled devices, with Echo devices over 100,000 5-star reviews, while active customers are up more than 5 times against the prior corresponding period.
Amazon’s subscription revenue surged 59% on a yoy basis driven by the fees related with Amazon Prime as well as the rising subscription services for digital music, digital video, audiobooks and e-books.
Management sees a lot of potential for their Whole Foods business while did not comment on their pharmacy rumors. The group is focusing on Prime Now, AmazonFresh, Whole Foods, Whole Foods products on the Amazon site, Amazon Lockers at the Whole Foods stores.
The group enhanced their Operating cash flow by 14% to $17.1 billion for the trailing twelve months, against $15.0 billion for the trailing twelve months ended September 30, 2016. On the other hand, their free cash flow fell to $8.1 billion for the trailing twelve months, against $9.0 billion for the prior corresponding period. Operating income fell 40% on a yoy basis to $347 million for the third quarter, against the operating income of $575 million in the prior corresponding period. But the Net income improved to $256 million, or $0.52 per diluted share, from $252 million, or $0.52 per diluted share, in pcp.
The share of Amazon delivered over 29.7% in this year to date (as of October 26th, 2017; Source: Google finance).