Amazon stock skyrockets after strong earnings in Q3

Use Amazon Alexa to control your Dish Network box.                  Dish Network

Use Amazon Alexa to control your Dish Network box. Dish Network

Shares of Amazon.com Inc., which are already up 30 percent this year, rose almost 8 percent to $1,046.22 in after-hours trading.

Revenues for the quarter were $43.7bn (£33.4bn), up from $32.7bn in Q3 2016. Net income was 256 million dollars in the third quarter or 0.52 dollar per diluted share compared with 252 million dollars or 0.52 dollar per diluted share, in third quarter 2016.

Amazon also broke out physical store sales for the first time, posting $1.3 billion in revenue, which primarily came from Whole Foods.

O'Shea also noted revenue growth and operating income at AWS "more than offset" the loss Amazon took on through investments in its global business. Amazon shares surged 13.7% higher as of 1 p.m.

The company's revenue guidance for the quarter topped out at $41.75 billion.

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The Amazon Web Services or AWS, which handle computing and data for large companies, saw growth in profit margin compared to the quarter before, posting a rise in sales of nearly 42% to end at $4.57 billion, which beat estimates of $4.52 billion.

"I think over time, you'll see more cooperation and working together between AmazonFresh, Prime Now, and Whole Foods as we can explore different ways to serve the customer", Olsavsky said during an earnings call.

The e-commerce giant's service sales growth (44%) outpaced its product sales growth (29%), notes Profitero vice president of strategy and insights Keith Anderson.

Amazon's third-quarter revenue increased 34% year over year. Meanwhile, Amazon's worldwide e-commerce business fared even worse, losing $936 million during the quarter.

Its cloud computing arm Amazon Web Services accounted for $4.6 billion in revenue and $1.2 billion in operating income.

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Founder and CEO Jeff Bezos touted the popularity of its devices and pointed out that it launched five new voice-activated devices in the last month.

"Customers have purchased tens of millions of Alexa-enabled devices..."

Amazon now pays developers out of its own pocket to create the skills, which Echo users are then able to download and install onto their Alexa at no charge.

The subscription option offers these new features and provides an illustration of how Alexa skill monetization can work for other developers as well. That pushed operating income, including $21 million from Whole Foods Market, down 40% to $347 million.

An Amazon Echo Dot is displayed during a program announcing several new Amazon products by the company, in Seattle. The Whole Foods deal includes 87,000 people who worked at the grocery chain, making up a big chunk of the employment growth this quarter.

United Kingdom growth up 0.4 pct in Q3
There was no change to the annual rate of growth which remained at 1.5%, beating market expectations of a dip to 1.4%. Sterling shot up following the release , rising more than 0.3% against both the United States dollar and the euro.

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