Yesterday, Amazon (AMZN) reported profits in excess of $2 billion. This is the largest in Amazon’s history. In the past year, the online retailer drew millions of new customers to its Prime service which brings in $100 per customer per year.
Changes to U.S. tax law added to Amazon’s net income as they were able to repatriate $789 million from overseas. Amazon stock bounced 5.7% in after-hours trading, increasing Bezos worth by $6.5 billion.
Tesla’s Home Team-Up
Tesla’s (TSLA) solar division is planning to introduce its home solar power system at 800 Home Depot locations nationwide. Tesla’s Solar Roof, which is just now hitting the market, is about $52,000 for an average home. This is clearly expensive; however, Elon Musk could be imitating his launch of Tesla’s electric vehicles. In 2008, the first Tesla Roadster sold for $120,000, but these proceeds funded research and development which allowed Tesla to launch the $70,000 Model S this year.
Amazon, Berkshire Hathaway (BRK.B), and JP Morgan Chase (JPM) have announced plans to partner and form an independent company focused on lowering employee healthcare costs. The companies, which employ over 1 million American workers collectively, view the current healthcare system as burdensome and unsustainable, as healthcare premiums have been rising much fast than wages. Many healthcare stocks were down on the news.