Why Are Amazon Shares Surging?
International Business Times
Published Jan 29, 2015 07:50PM ET
Updated Jan 29, 2015 08:15PM ET
Why Are Amazon Shares Surging?
By Jessica Menton -
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Shares of Amazon.com Inc. skyrocketed more than 13 percent Thursday in extended-hours trading after the e-commerce company posted earnings that smashed Wall Street's expectations. Meanwhile, shares of tech giant Google Inc. rose more than 1 percent, despite missing revenue forecasts due to currency headwinds.
U.S. stocks rallied Thursday, with the blue-chip Dow soaring more than 200 points, after oil prices rebounded. The Dow Jones Industrial Average, which measures the share prices of 30 large industrial companies, jumped 225.48 points, or 1.31 percent, to close at 17,416.85; the S&P 500 stock index added 19.09 points, or 0.95 percent, to end at 2,021.25. The Nasdaq Composite rose 45.41 points, or 0.98 percent, to finish at 4,683.41.
Amazon Shares Skyrocket More Than 13% After E-Commerce Giant Smashes Estimates
Shares of Amazon.com Inc. NASDAQ:AMZN surged 13.22 to $353.01 Thursday in extended-hours trading after the company far exceeded Wall Street earnings forecasts as sales jumped nearly 15 percent during the holiday quarter.
Amazon reported fiscal fourth-quarter net income of $214 million, or 45 cents a share, compared with earnings of $239 million, or 51 cents a year earlier. But earnings per share blew past estimates for earnings per share of 18 cents, according to Reuters data.
However, revenue rose 15 percent from a year earlier to $29.33 billion, below analysts' forecasts of $29.67 billion.
Google Shares Fluctuate After Tech Giant Misses Revenue Forecasts
Google Inc. disappointed investors Thursday after the company missed expectations on earnings and revenue due to headwinds the company faces from a strong U.S. dollar. Investors fear Googleâs revenue growth is slowing in the companyâs key core search advertising business.
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Google reported a fiscal fourth-quarter profit of $4.76 billion, or $6.91 a share, as revenue rose to $18.1 billion, compared with a profit of $3.38 billion, or $4.95 a share, on revenue of $15.7 billion a year earlier.
However, Wall Street had expected Google to report earnings of $7.11 a share on revenue of $18.46 billion, according to analysts polled by Thomson Reuters.
Following the report, Google Inc.âs Class A shares NASDAQ:GOOGL rose 1.76 percent to $522.25 in extended-hours trading Thursday, while the companyâs Class C shares NASDAQ:GOOG rose 1.54 percent to $518.50.
Ahead on Fridayâs earnings calendar, U.S. multinational energy company Chevron Corporation NYSE:CVX will report earnings before the financial markets open Friday. Shares of Chevron Corp. have dropped 18.37 percent to average $117.42 during the last two quarters.
Written By: International Business Times
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