Profit-deficient shareholders of Amazon.com were rewarded today when the stock shot up 10 percent after the firm unexpectedly lurched into the black in the third quarter.
Shares of Amazon.com increased $56.62 to $620.53 following the after-market update.
Amazon prides itself on striving to be “Earth’s most customer-centric company” and is notorious for foregoing profits to spend on new distribution capabilities and services for shoppers. For instance, the company developed the Dash Button, which can be used to easily replenish items like detergent with a wireless button in the laundry room. More than 500 goods can now be bought with the button. Other efforts, such as the Fire phone, have not been as successful.
The company’s third-quarter net income tallied $79 million, or 17 cents a share, and compared with losses of $437 million, or 95 cents, a year earlier. Total revenues for the quarter ended Sept. 30 jumped 23.2 percent to $25.4 billion from $20.6 billion. The company’s revenues on product sales increased $2.4 billion to $18.5 billion.
Analysts were prepared for the company to lose 13 cents a share and to post slightly lower revenues of $24.9 billion.
Amazon has been cozying up to the fashion industry as of late, sponsoring runway shows in India and recently launching a Made in Italy marketplace.
EBay also impressed investors with a better-than-expected third-quarter report on Wednesday, but sources have said traditional retailers had a tough run in the quarter.
