Amazon Surges on Confidence Over Cloud, Spending Discipline
July 20, 2015
Grazed from Bloomberg. Author: Spencer Soper.
Amazon.com Inc.’s shares reached another record, three days before the company’s earnings report, as investors expected upbeat results from the fast-growing cloud-computing business, a boost in sales from last week’s Prime Day promotion and signs that the company is controlling spending. Amazon rose 1.1 percent to close at $488.10 in New York on Monday.
The stock set records three days last week and is up 12 percent this month, while the Standard & Poor’s 500 Retailing Index has gained 5.5 percent. The Seattle-based online retailer reports earnings Thursday. Analysts on average project earnings of $364 million on sales of $22.4 billion, according to data compiled by Bloomberg…
The shares’ advance shows renewed faith that Amazon can boost profit margins despite Chief Executive Officer Jeff Bezos’s history of sacrificing short-term earnings to invest in growth. A year ago, the company’s shares tumbled almost 10 percent the day after reporting a $126 million quarterly loss, hurt by a surge in spending on such items as its new Fire smartphone…
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