Whole Foods Helps Boost Amazon Shares Over $1000

Get ready to start paying for premium Alexa skills as Amazon monetizes Echo

Get ready to start paying for premium Alexa skills as Amazon monetizes Echo

The quarter is just further evidence that the e-commerce giant "continues transitioning to becoming more of a services company, as opposed to a retailer in the traditional sense", Cooper Smith, head of Amazon research at brand intelligence firm L2, told Retail Dive in an email.

Although AWS has continued to be a massive profit driver, accounting for almost 10% of total revenue in Q3, sales growth for the cloud service actually slowed down for the eighth straight quarter.

Amazon reported net income of $256 million, or 52 cents per share, for the three months ending September 30.

Revenue rose 34 percent to $43.47 billion, beating the $41.58 billion analysts expected. Analysts on average were expecting 3 cents per share, according to Thomson Reuters I/B/E/S.

"I think over time, you'll see more cooperation and working together between AmazonFresh, Prime Now, and Whole Foods as we can explore different ways to serve the customer", Olsavsky said during an earnings call.

In its outlook for the fourth quarter, Amazon said its net sales are expected to be between $56 billion and $60.5 billion, or to grow between 28% and 38% compared with fourth quarter 2016.

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Impressively, Amazon has managed to increase the pace of growth from its online stores, where sales increased by 22% over the prior year. The e-commerce and cloud computing giant crushed Wall Street's expectations and its own guidance across the board. Meanwhile, Amazon's global e-commerce business fared even worse, losing $936 million during the quarter.

The arrival of a simple monetization feature will likely draw in big name developers with original titles which would help cement Amazon's role as the leading voice digital assistant platform, with the company able to offer monetization options, reach and engagement, a combination not available on any other platform. Amazon CEO Jeff Bezos said customers have now purchased "tens of millions of Alexa-enabled devices".

An Amazon Echo Dot is displayed during a program announcing several new Amazon products by the company, in Seattle.

Operating income decreased 40 percent to 347 million dollars in the third quarter, which includes income of 21 million dollars from Whole Foods Market. Given Amazon's appetite for growth - even when it comes at the expense of near-term profitability - it seemed logical that Amazon might spend a significant sum integrating Whole Foods' operations into its business.

As discovered by the website Voicebot.ai while using an Amazon Echo Show, the Jeopardy skill - based on the TV quiz show of the same name - has started offering a subscription model where users pay $1.99 per month to gain six extra clues each month.

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