Amazon is now worth $287 billion. Yesterday, the company (NASDAQ:AMZN) managed to beat analyst expectations for its third-quarter earnings report by bringing in a profit. And today, shares opened at $617.51, 9.5 percent above yesterday’s closing price of $563.91.
The company has been on a roll on the stock market. Today’s opening price was an all-time high. But it isn’t really relevant as the company managed to beat its all-time high many times this year. On January 2, 2015, the company was trading at $308.52. So the stock doubled in less than 10 months.
When it comes to market capitalization, the company is now worth a little bit more than Facebook. Facebook’s current market cap is $286.5 billion. But it’s just a matter of time before Facebook overtakes Amazon.
So what does it all mean? Whatever Amazon announces, it seems like shareholders are willing to vote with their wallets, driving the stock up. The company isn’t reporting a huge profit. With a tiny net income of $79 million, it’s nothing compared to its insane revenue of $25.4 billion.
But it all comes down to growth. The company is still growing when it comes to sales while keeping margins very low. Shareholders believe that Amazon could flip a switch any day, raise its prices, squeeze more money from its subscribers, and profit would come.
As a reminder, Amazon stock spiked 14 percent after its Q2 earnings. Maybe it’s a good idea to buy stock right before Amazon announces its earnings.
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