Investing

Amazon Set to Batter Competition Ahead of Holidays

Amazon
jetcityimage / iStock Editorial via Getty Images

24/7 Wall St. Insights

Amazon.com Inc. (NASDAQ: AMZN) stock is up 30% this year, while the S&P 500 is 23% higher. Most of the attention to the company’s recent earnings was focused on its success in the AI cloud sector. However, its North American retailer posted amazing numbers. Revenue was up 8% to $95.5 billion. Operating income for the same segment rose 32% to $5.7 billion. Amazon’s guidance includes the whole company. It was for an increase of 7% to 11%.

The holiday season starts on October 30, November 1, or Thanksgiving, depending on who one asks. When the U.S. Department of Commerce posted the third quarter’s numbers, it showed that consumer spending rose the most in a year and a half. Inflation also slowed, which should increase discretionary spending.

Amazon still completely dominates the U.S. e-commerce business. As of 2023, it holds a 38% share. Walmart Inc. (NYSE: WMT) was well behind, at just below 7%.

Amazon’s advertising revenue has become a large part of its revenue mix. It rose 19% in the most recent quarter to $14.3 billion. Amazon’s US online ad market share has grown to 14%, closing in on Meta’s 24%.

There is not a single sign that Amazon will fail to continue to own e-commerce this holiday season.

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.