Amazon Bigger Than Walmart After Profits Jump

The online retailer says its Prime programme and cloud computing services pushed growth up, making it worth more than Walmart.

Amazon has leap-frogged Walmart to become the most valuable retailer in the US following estimate-beating profit figures.

Amazon said its second-quarter sales were 20% higher at $23.2bn (£15bn) compared with a year earlier.

This beat estimates by analysts and caused shares in the company to spike at 19% higher in after-hours trading.

The jump meant Amazon was valued as high as $267bn (£172bn), eclipsing Walmart’s market value by $32bn (£21bn).

Amazon said its Prime service helped drive growth in the quarter.

It held its first Prime Day on 15 July with an exclusive sale targeted towards those customers who in the UK pay £79 for the privilege of, among other things, unlimited free deliveries.

More new members tried Prime worldwide than any single day in Amazon’s history with customers purchasing more units on Prime Day than on Black Friday 2014.

Amazon, which celebrated its 20th birthday on 16 July, started life in a garage in Seattle.

Initially an online bookstore, it has since diversified into cloud computing services which it also credited for the strength of sales in the quarter to the end of June.

The Amazon Web Services  division (AWS), which provides a suite of services and products that allows users to access applications on any machine with an internet connection, saw revenues jump 81% to $1.8bn (£1.2bn).

Amazon shares have risen 55% so far this year.

They closed regular trading on Thursday at $482.18, an increase of 35% over the last 12 months.

After the earnings were revealed last night, shares jumped and settled up $85.54 at $567.72 in after-market trading.

According to Bloomberg, Amazon’s founder and chief executive Jeff Bezos is worth $43bn (£28bn).

 

 

 

 

Source: SKY NEWS

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