Piper’s Gene Munster Warns on Amazon (AMZN)

Investors gobbled up shares of Amazon.com (AMZN) late Thursday after the e-commerce giant reported a surprise Q2/15 profit of $92 million and better-than-expected sales, but Piper Jaffray analyst Gene Munster warned that investors shouldn’t be complacent.

“Feels like the margins over the next quarters will continue to move higher, but to say we can rest easy for the next few years on that, I would say is a fool’s bet,” Munster said on CNBC’s “Squawk Box.” “You never can rest easy on Amazon because…they make such big bets.”

Munster added that, during the company’s cc, Amazon CFO Thomas Szkutak said the online retailer would continue to focus on greater productivity, “which basically means this hope for greater margins continues to be a focus.”

Amazon stock jumped 102 points, or 20%, to $584 in pre-market trading. The spike puts Amazon’s market cap at $268 billion, more than the $233 billion of brick-and-mortar giant Walmart Stores Inc. (WMT).

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