How Amazon's Recent Announcements Could Impact Its Bottom Line

Amazon is reporting its first full quarter since unveiling its futuristic convenience store and acquiring Whole Foods, pushing deeper into the grocery market. Its share price has surged over 66% in the past year, driven by e-commerce growth, cloud computing, and advertising. However, some investors are cautious about a potential pullback due to high spending. Amazon Prime's growth is crucial, especially during the holiday season. With plans for a second headquarters and expansion into home appliances and health insurance, questions about market saturation arise.

What major acquisition did Amazon make to strengthen its position in the grocery market?

• Target

• Whole Foods

• Kroger

• Costco

Which of the following factors contributed to Amazon's share price increase?

• Reduction in operational costs

• Decrease in e-commerce sales

• Decline in advertising revenue

• Growth in cloud computing business

What is a potential reason some investors are cautious about Amazon's future?

• High revenue growth

• Excessive spending compared to revenue growth

• Decreasing number of Prime subscribers

• Lack of new product launches

How does Amazon Prime help in increasing customer loyalty?

• By offering discounts on all products

• Through free two-day shipping during holidays

• By reducing subscription fees

• By providing exclusive access to new products

What new ventures is Amazon considering to expand its business?

• Developing a new smartphone

• Launching a new social media platform

• Entering the health insurance market

• Opening a chain of restaurants