More acquisitions can help the tech giant’s performance, says David Garrity, CEO of GVA Research.
AMZN results surpassed in both revenues (+34% y/y) and EPS ($0.52 vs. expectations of $0.04). Subscription revenues grew +59% y/y with Amazon Prime subscription growth setting foundation for strong future results. Meanwhile, the Whole Foods acquisition integration went better than expected with $21mm in profit off the one month of revenues reflected in 3Q17 results. This may serve to bolster investor confidence in AMZN’s ability to integrate future acquisitions.