Hot Tech Stock to Watch: Amazon.com, Inc (NASDAQ: AMZN)

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Amazon.com, Inc (NASDAQ: AMZN) stock rose over 2.2% in the pre-market session of April 30th, 2021 (Source: Google finance) after the company’s first-quarter profit more than tripled from a year ago, fueled by the growth of online shopping.

The company has reported profit of $8.1 billion for the first quarter of FY 21, compared to $2.5 billion the year before. Operating cash flow increased 69% to $67.2 billion for the trailing twelve months, compared to $39.7 billion for the trailing twelve months ended March 31, 2020. Free cash flow increased to $26.4 billion for the trailing twelve months, compared with $24.3 billion for the trailing twelve months ended March 31, 2020.

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AMZN in the first quarter of FY 21 has reported the adjusted earnings per share of $15.79, beating the analysts’ estimates for the adjusted earnings per share by $6. The company had reported the adjusted revenue growth of 44 percent to $108.5 billion in the first quarter of FY 21, beating the analysts’ estimates for revenue of $104.5 billion, according to IBES data from Refinitiv. Amazon is one of four American companies that have reported quarterly revenue above $100 billion. The others are iPhone maker Apple, oil and gas company Exxon Mobil and retailer Walmart. Amazon said ad and other sales grew 77 percent to USD 6.9 billion, ahead of analysts’ estimate of USD 6.2 billion. The company posted increase in operating income to $8.9 billion in the first quarter, compared to operating income of $4 billion in first quarter 2020.

Meanwhile, AWS’s long-time chief Andy Jassy is scheduled to succeed Bezos as Amazon’s CEO this summer. His unit continues to be a bright spot. Recently, Dish Network Corp announced a deal to build its 5G network on AWS. The division increased revenue 32 percent to USD 13.5 billion, ahead of estimates of USD 13.2 billion. The sales at its cloud-computing business, which helps power the online operations of Netflix, McDonald’s and other companies, rose 32% in the quarter. And at its unit that includes its advertising business, where brands pay to get their products to show up first when shoppers search on the site, sales grew by 77%.

Amazon expects operating income for the second quarter to be between USD 4.5 billion and USD 8 billion, which assumes about USD 1.5 billion of costs related to COVID-19.

For the second quarter ending in June, Amazon projected sales to be in the range of $110 billion and $116 billion, also better than Wall Street expected.

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