Minutes after the Nasdaq Composite closed at a record, three of the biggest bellwethers in technology reminded the market precisely why investors are so bullish on companies that do business through the Web.
Amazon.com Inc.
The numbers are a testament not only to the endurance of the Internet as a conduit of commerce and information, but also to the ways it has revolutionized how the world’s biggest corporations operate.
All three companies have been at the heart of these changes since the Web’s inception as a business tool, and are now vying for a bigger slice of the still-fledgling market for cloud computing.
Google is seeking to extend its lead in online search and advertising, Amazon is spending billions of dollars to expand
“We are
The Nasdaq Composite climbed 0.4 percent on Thursday to the highest level in 15 years, topping its dot-com era high.
Amazon’s Growth
“Right now people feel good about technology,” said Sarah Kunst, a partner at Fortis Partners, an executive search firm. “We’re starting to believe in Elon Musk and
Amazon shares jumped as much as 8 percent in extended trading after the company reported first-quarter sales that beat analysts’ estimates. Chief Executive Officer Jeff Bezos has been investing in speedy delivery services, data centers and original video programming to woo customers and to keep those users spending more time on the site.
Sales jumped 15 percent to $22.7 billion, the company said Thursday in a statement. Analysts on average projected $22.4 billion, according to data compiled by Bloomberg.
Revenue from Amazon Web Services, which provides data storage and computing power to other businesses, surged to $1.57 billion. AWS helps Amazon benefit from growth in traffic to the websites of other companies, including
“Amazon has been stealthy,” Forrest said. “I didn’t think they were a technology company. I thought they were a retailer that used technology.”
The Seattle-based company said it intends to keep investing in new businesses that will expand its reach with customers, including data centers, one-hour delivery in certain cities, and streaming video content.
Now in its second year under CEO Satya Nadella, Microsoft reported profit that exceeded analysts’ estimates as growth in cloud software sales and more expensive versions of server programs made up for slowing demand for personal-computer products. The stock gained 3.4 percent in late trading.
“They’ve got a growing cloud number that isn’t stopping,” said Mark Moerdler, an analyst with Sanford C. Bernstein & Co.
Profit, excluding costs related to restructuring and integration, was 62 cents a share on sales of $21.7 billion in the third quarter, which ended March 31, the Redmond, Washington-based company said Thursday. Analysts had estimated 53 cents on sales of $21.1 billion, according to data compiled by Bloomberg.
Search Leader
Google’s results showed that its strategy of stepping up investments to lure more users and advertisers is paying off, fueling gains in the number of ads it sold in the first quarter.
While profit and sales came in just shy of estimates, costs were kept well under control, boosting investor confidence and sending Google’s shares up 3.5 percent in extended trading.
CEO Larry Page is pouring money into new initiatives to make sure that people continue to use Google’s search, video and other Internet services instead of going to Facebook Inc., Amazon and other Web destinations. As a result, Google’s advertising volume grew 13 percent, making up for a 7 percent decline in ad prices.
Wireless Service
Google’s sales, minus
Earlier this week, Google unveiled a new wireless service called Project Fi. The company also plans to offer a subscriber version of its YouTube video-sharing site as soon as this year, letting viewers see clips without having to sit through ads. The company also is trying to improve its search experience on smartphones, updating its search service to favor websites that are tailored to mobile devices.
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