New York Amazon shares shot to record levels Friday after a blowout earnings report seen as a potential watershed for the US online giant. Amazon leapt as much as 17 percent, before closing with a 9.8 percent gain at $529.42 a day after reporting a surprise profit, which fueled h
New York
Amazon shares shot to record levels Friday after a blowout earnings report seen as a potential watershed for the US online giant.
Amazon leapt as much as 17 percent, before closing with a 9.8 percent gain at $529.42 a day after reporting a surprise profit, which fueled hopes that the company's strategy of big investments is finally paying off.
"After questioning the investment rationale for years, Amazon is seeing the fruits of its labors in both revenue growth and operating margin," said Deutsche Bank analyst Ross Sandler in a note to clients.
"Few mega-cap consumer Internet companies can sustainably demonstrate accelerating revenue and margin expansion at the same time, and when it happens, it's a magical trend that rightfully gets rewarded."
Amazon's shares have doubled since hitting lows last October on pessimism over its profit outlook, and Friday's surge put its market capitalization at nearly $250 billion, overtaking the brick-and-mortar retail leader Wal-Mart.
The US e-commerce giant, which is also a major player in online video and cloud computing, on Thursday reported a net profit of $92 million while revenues jumped 20 percent from a year ago to $23.18 billion.
