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Amazon – The Apex predator

The share price of Amazon on Thursday went up 13% at the end of the day adding more than $190 billion to its market value.

Amazon - The Apex predator
Photo by Christian Wiediger

A historic 2 days at the market as Meta recorded its biggest loss yesterday and today Amazon breaks the record for the greatest ever single day increase in valuation by $190 billion beating the record of Apple of $181 billion.

Amazon is called our modern one-stop solution to all needs. They offer delivery of all products known to mankind with Prime, they have their entertainment application Prime Video and many more amenities are included at just ₹179 per month. Today we’ll be talking about Amazon’s rise to the apex.

Recently Amazon had its prime days sale where all of its products were available for up to 70% discount. It witnessed one of the biggest ever unit sales for this year.

Now let’s see why Amazon has been able to stack up this many orders and skyrocket its stock price.

It’s all basic economics after the COVID-19 pandemic people have started to earn more and the money is being pumped into the market, as a result, money is in the hands of a customer, the investor is increasing and their spending it on apps like Amazon buying electronics, clothes whereas the investors spending it on Wall Street buying shares or Amazon.

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Amazon - The Apex predator
Image via actconsulting.co

The Q3 of 2022 hasn’t been kind for giants like Facebook, Google, and Walmart but Amazon had said they expect a revenue jump at the end of Q3 and they have achieved it. Despite the inflationary gap increasing, the demand for products remains high which appears to be a win-win for Amazon. Amazon has estimated its net sales between $125 billion to $130 billion. This growth has now been added to Amazon which is valued at $1.6 trillion.

Their plan of action is very clear with this increased revenue they aim to make prime even better by updating it for members by investing in faster shipping modes and adding benefits like free delivery from GrubHub for a year, said CEO Andy Jassy. Amazon has also doubled the cart items it can deliver in a day making long-term goals achievable and short-term ones sustainable.

Why is Amazon’s share price rising?

Amazon investors woke up to their fortunes being 1.9% up on Thursday at 11:03 am. This might be because Amazon was planning a release of its first-quarter earnings.

They were expected to hit revenue of $116 billion and the e-commerce giants crossed it with an 11.3% increase compared to last year with profits expected to tumble 48% to $8.36 per share.

These numbers with the market being bad and impacting the losses and backlogs of COVID-19 are just phenomenal. Real Disposable Income fell by 2% which is income that can be spent. A price hike and a low RDI worked out well for Amazon.

Conclusion 

Amazon’s stock price is still 15% down from its highest close of $3,731.41 and has still managed to reach a trillion in valuation at a time the market is preparing for a dovish stance. Jeff Bezos and Co have had a Q3 to remember for their lives.

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Source: Mint

Written By

Rohan Gandhi is a Business and Finance News Analyst and Content Writer at Empire Weekly. He is a young content writer with inherent zen of creativity specializing in sports and financial topics, looking to make content simple and informative. Explaining content in a way readers understand.

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