Amazon swung to a surprisingly strong profit in the first three months of the year, boosted by its fast-growing cloud business and strong North American e-commerce sales. Shares soared!
Unlike other recent tech earnings disappointments like Apple and Alphabet, Amazon was able to wow Wall Street with profits, even though these pale beside the bottom lines of its major tech brethren.
Momentum came from its core e-commerce sales as well as its cloud computing division, AWS, and it gave a revenue outlook that topped forecasts. Expect more great TV shows as a result of those successes, the company said in its late Thursday report.
Shares of Amazon rallied 12% to $675.94 early Friday.
If you purchased only 100 shares of Amazon when we put out our "Trade of the Week" back at $585, the trade is up $90 points. If you purchased just 1 lot of 100 shares, the overall risk was $500 with our stop at $580. With it trading above $675 after a great earnings report, that would be a $9,000+ profit !