Amazon shares opened at $665.55 this morning, up 10.6 percent compared to yesterday’s closing price of $602. In other words, Amazon’s market capitalization just grew by nearly $30 billion.
Yesterday, Amazon announced some blockbuster earnings. This was the company’s most impressive quarter. In particular, Amazon Web Services is growing like crazy and could generate well over $10 billion in revenue in 2016.
Many companies would like to be as big as Amazon Web Services alone. But it looks like the company managed to turn a nifty little side business into a profitable subscription-based business.
And Amazon has also finally flipped the switch. For years, Amazon has been optimizing its margins to grow, grow and grow. The company didn’t care about generating profits. It only wanted to become bigger.
Now, while its net profit is ridiculous when you compare it to the company’s revenue, Amazon has generated $513 million in profit this quarter.
Can you guess how shareholders reacted? They loved it. On February 9 2016, Amazon shares were trading at $482.07 following a few months of great stock market performance.
In 80 days, Amazon shares popped more than 38 percent. While many people are wondering whether investors don’t care about tech companies anymore, there’s one thing for sure — they will never have enough of Amazon.