Business and Finance

Amazon Shares Surpass Walmart After Better Than Expected Earnings Announcement

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Amazon’s market capitalization has surpassed the king of brick and mortar retail – Walmart.

After announcing significantly better than predicted profits, a 20% year over year increase. This actually marks one of the rare times that the online retailer has actually been profitable. Due to acquisition costs along with R&D costs, Amazon usually operated on a quarterly loss.

However, the numbers don’t tell all of the story in comparing the two companies. Amazon is boosted by its on demand video services as well as its cloud computing services, which now power many of the largest websites on the internet.

Here’s the down and dirty numbers, according to CNBC:

The company posted second-quarter profit of 19 cents per share on $23.18 billion in revenue. Its sales rose 20 percent from the year-earlier period and were more than $300 million better than the highest of 36 estimates from analysts polled by Thomson Reuters.

Wall Street expected to report a quarterly loss of 14 cents a share on $22.39 billion in revenue, according to consensus estimates from Thomson Reuters. The shares were up as much as 18 percent in extended trading after the results and were tracking well above their all-time high of about $493.

What makes the announcement even more impressive is the fact that Amazon’s operating expenses now top $22 billion annually.