Amazon’s Q3 Beats Street As Sales Surge 37% To $96 Billion

Tech giant Amazon blasted through expectations with revenue at $96.1 billion, up 37% and earnings of $6.3 billion, or $12.37 a shares.

The stock popped initially then eased as investors may have been underwhelmed by fourth quarter predictions.

The results follow two blow-away quarters dominated by COVID-19 that made the company a must-have “stay-at-home” stock as the pandemic pushed online shopping to new heights and buoyed video viewing.

Amazon Prime Video is a relatively small piece of Jeff Bezos’ $1.7 trillion market cap company and isn’t broken out. But there was a shout-out out to the hottest TV property around today, Borat Subsequent Moviefilm which Amazon Studios CEO Jennifer Salke said this week has generated “tens of millions of views.”

Amazon’s earnings release is always and odd a laundry list of factoids of things it’s done during the quarter. Here are a few:

-The Amazon Studios global original movies slate continues to grow, with additions such as Sacha Baron Cohen’s political satire Borat Subsequent Moviefilm, which recently launched globally on Prime Video, as well as Tom Clancy’s Without Remorse, starring Michael B. Jordan, slated to launch in 2021.

-Amazon premiered several new and returning Amazon Original series, including The BoysBreathe into the ShadowsBandish BanditsMirzapur,and Putham Pudhu Kaalai in India, Peep Time and Documental S8 in Japan, Pan y Circo in Mexico, and All or Nothing: Tottenham Hotspur in the UK.

-Amazon Prime Video announced that live international rugby games will be exclusively available to UK Prime customers this winter with a brand new tournament called the Autumn Nations Cup. The tournament will feature the Six Nations (England, France, Ireland, Italy, Scotland, and Wales) as well as two guest teams from Fiji and Georgia.

Amazon Prime belongs to a business line called subscription services that’s seen growing 27% to $6.29 billion. One analyst estimates Amazon will expand global Prime memberships by nearly 20% in 2020 to 179 million members. Prime members apparently spend 2-3 times more money buying stuff on Amazon than non-members.

The company will host a call later today and analysts are looking for clarity on the current fourth quarter and anticipated holiday sales, saying capacity expansions could really drive the numbers higher.

A Jefferies analyst, citing industry sources, said the company is adding the equivalent of 40 football fields of capacity each week in the U.S. alone and will see total capacity up by 70% year over year, with a surge in number of packages handled. The key this holiday season, Jefferies said, is whether the capacity expansions will be enough to handle an expected surge in demand and orders.

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