On Strong Earnings, Amazon And Whole Foods Face Culture Clash

Amazon Quarterly Revenue Up 34 Percent Following Whole Foods Acquisition

Overall profit margins, however, narrowed during the quarter as Amazon continues to invest in new warehouses and worldwide expansion in countries like India, while also lowering prices to compete with retailers such as Walmart ahead of the crucial holiday season. The company completed its $13.7 billion Whole Foods acquisition on August 28 and immediately lowered prices at the grocery giant. The largest online retailer in the world said its net income grew to over $256 million equal to 52 cents a share during the quarter. Last year, Amazon began a start-up accelerator program around Alexa, this summer the company created an Alexa-centered developer learning series, and the e-commerce giant has made other moves as well, like releasing core technology to developers.

"There'll be a lot of integration, " Amazon's chief financial officer Brian Olsavsky said on a call with analysts, citing how Amazon's two-hour delivery service Prime Now could work with Whole Foods, for instance.

While Amazon is still worth less than giants like Apple and Alphabet, analysts have long expected it to top the psychologically meaningful number of $1,000 per share.

Revenue from its subscription fees grew by 59% to over $2.4 billion.

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.

Amazon's stock immediately jumped, hitting an after-hours high of $1,054.99 a share.

Unlike peers, Amazon runs on razor-thin profit margins because it sinks most of its profit back into its business.

Zachary Levi To Star In DC's 'Shazam!' For New Line
Levi, best known for his role on "Chuck", most recently appeared in " Heroes Reborn " and the Eva Longoria comedy " Telenovela ". It's not certain now though whether Johnson will appear in the Shazam! film, as DC is planning a stand alone Black Adam movie.

Amazon said it added 160,000 employees in the last three months (roughly 87,000 from Whole Foods), ahead of the all-important holiday seasons.

Olsavsky said that Amazon and Whole Foods are now "fully working together".

Revenue, meanwhile, climbed to $43.7 billion, up from $32.7 billion a year earlier.

Amazon also kicked off its National Football League live streaming deal and suspended the head of its studio division, Roy Price, after sexual harassment claims made against him.

(Amazon often chooses to reinvest in operations, and many predicted the company would do so this quarter, as well.) Even more heartening, it offered a rosier outlook for the fourth quarter and says it expects sales to come in between $56 billion and $60.5 billion, or between 28% and 38%.

It is unclear what impact the shakeup may have on Amazon's ability to secure video that competes with Netflix Inc for viewers' attention.

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