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Amazon remains unstoppable.
The company accounts for nearly half of all online retail sales in the United States. She continues to expand her commercial brick and mortar footprint through [19659004] Whole Foods, Amazon bookstores and new free payday locations. And every new business, from advertising to cloud computing to healthcare, will almost invariably become a billion dollar business.
Wall Street expects domination to continue when Amazon ( AMZN ) reports his second-quarter results after the bell on Thursday. Analysts expect Amazon 's sales to reach $ 53 billion for the three months ending June, a 40% increase over the same period last year.
All this growth comes as Amazon is doing something that once seemed unthinkable: it is constantly generating a profit. Analysts expect Amazon to post a profit of $ 2.50 per share, up from 40 cents a year ago, even as the company continues to expand. invest heavily in distribution centers, new stores and expensive content offerings.
Michael Graham, an analyst at Canaccord Genuity, wrote in an investor note this month that Amazon had "the most robust and sustainable growth prospects" of any FANG company. , which he defines as Facebook (] FB ) Netflix ( NFLX ) and Google [19659006] ( GOOGL ) .
Amazon Prime remains at the center of this growth. More than 100 million people pay for Amazon's subscription service, which includes a two-day delivery and access to a growing list of TV shows and movies. During the quarter, Amazon raised the price of a premium subscription from $ 99 to $ 119 a year.
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"Premium growth remains the key jewel for Amazon," wrote Daniel Ives, an analyst at GBH Insights, in a note to investors last week. . Amazon quickly responded by capitalizing on its acquisition of Whole Foods for $ 13.7 billion in order to attract even more premium subscribers with discounts and free deliveries of two hours.
And then there is Prime Day, the international shopping day that is held every year in July. Despite technical problems, this year's 36-hour sale has been Prime Day's largest commercial event in the past four years and has attracted a record number of new subscribers.
However, this is not just prime. Amazon Web Services, the company's cloud computing enterprise, dominates public cloud computing against the competition of Microsoft ( MSFT ) and Google . Its cloud computing service saw its sales rise 50 percent to more than $ 5 billion in the first quarter, reinforcing its role as a pillar of Amazon's bottom line.
Amazon continues to gain momentum in advertising . The "other" category of the business, which would consist "primarily" of advertising services, recorded a business turnover of $ 2 billion in the first quarter, more than double the amount of business. last year. "Amazon is considered the alternative to Google and Facebook," according to Deutsche Bank analysts.
These moneymakers allow Amazon to "invest more than ever while delivering superior profitability," says Dan Morgan, Senior Portfolio Manager at Synovus Trust.
Amazon threatens to match, if not eclipse, Apple ( AAPL ) the market value, which would make it the society the more valuable in the world. A solid earnings performance Thursday could help propel Amazon after Apple and put it on the path to becoming the first company to reach a market capitalization of $ 1 trillion.
CNNMoney (New York) First published on July 26, 2018: 12:02 ET
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