What To Expect From Amazon.com, Inc. (AMZN) Earnings Today

This! Is! Jeopardy!YouTube

This! Is! Jeopardy!YouTube

That figure includes $1.3 billion from Whole Foods Market, acquired August 28. After backing out the Whole Foods portion and currency exchange effects, Amazon's net sales still landed above that guidance range, stopping at $42.1 billion.

The world's largest online retailer said net income rose to $256 million, or 52 cents per share in the quarter ending September 30. That pushed operating income, including $21 million from Whole Foods Market, down 40% to $347 million.

Amazon's stock price soared to more than $1,000 per share in after-market trading on Thursday after the company reported higher-than-expected revenues and offered an optimistic projection for its next quarter, which includes the critical holiday season. Here's what to expect from the king of e-commerce.

Revenue from Amazon Web Services, the company's fast-growing cloud services business, surged 41.9 percent to $4.58 billion, beating the average estimate of $4.52 billion given in polling by data and analytics firm FactSet. Meanwhile, Amazon's worldwide e-commerce business fared even worse, losing $936 million during the quarter.

O'Shea also noted revenue growth and operating income at AWS "more than offset" the loss Amazon took on through investments in its worldwide business. Even so, Amazon collected $3.5 billion of free cash in the third quarter, roughly 10 times the operating income metric.

Amazon's Alexa-enabled devices remain a hit with customers. The launch of new services like Amazon's unlimited music service in several European countries, and the rollout of Alexa services to India and Japan, have all taken their toll on the cost line.

In addition, Bezos said active customers on Alexa-enabled devices are up five times over the same period previous year. Given Amazon's appetite for growth - even when it comes at the expense of near-term profitability - it seemed logical that Amazon might spend a significant sum integrating Whole Foods' operations into its business. She says that CEO John Mackey's recent comments at an industry event may signal "that the culture clash between Amazon and Whole Foods has been challenging so far".

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Over the next four years, B2B e-Commerce sales are expected to grow at an annual rate of 7.4% until they reach $1.2 trillion by 2021, according to Forrester. "These are not dramatic, but they are a step in the right direction and show that Amazon's approach is being noticed by consumers". "Amazon owns and operates an ecosystem of platforms that reinforce each other internally and with customers", he said. The Motley Fool has a disclosure policy.

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