The shares of Amazon.com (NASDAQ:AMZN) surged after the company reported better-than-expected quarterly earnings during the extended trading on Thursday.
The stock price of Amazon.com climbed more than 9% to $618.70 per share after-hours.
Amazon.com financial results
Amazon.com reported earnings of $79 million or $0.17 per share for the third-quarter compared with a loss of $437 million or $0.95 per share in the same period last year. The e-commerce giant’s total net sales increased 23% to $25.36 billion.
Wall Street analysts expected the Amazon.com to post a loss of $0.13 per share and $24.91 billion in revenue.
During the quarter, the e-commerce giant recorded an operating income of $406 million compared with an operating loss of $544 million last year.
According to Amazon.com, its operating cash flow increased 72% to $9.8 billion for and free cash flow was $5.4 billion for the trailing twelve months.
Amazon.com six-pack Fire tablet
Amazon.com founder and CEO Jeff Bezos said the company is recommending the six-pack Fire tablet to consumers for the first time. The six-pack Fire tablet costs $250 or $50 each.
“Fire sets a new bar for what customers should expect from a low-cost tablet. This is one more step in our mission to bring customers premium products at non-premium prices. Fire is the #1best-selling product on Amazon.com since launch, and based on the strength of the customer response, we are building millions more than we’d already planned,” said Mr. Bezos.
Brian Olsavsky, chief financial officer at Amazon.com said the company would increase its production of fire tablets by “millions more” than its initial plan.
“Jeff Bezos whiffed with the Fire phone last year and he realized he has to keep Wall Street happy because he pays people with stock. The upside here is coming from less spending on stupid products like the Fire phone,” said Michael Pachter, an analyst at Wedbush Securities.