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Amazon revenue soars as cloud, retail businesses dominate
[Reuters] Amazon.com Inc's (AMZN.O) retail and cloud-computing sales rose in the first quarter, inching above Wall Street's expectations and sending the company's shares to an all-time high in extended trading.The world's largest online retailer said on Thursday net sales rose 23 percent to $35.7 billion, just beating analysts' average estimate of $35.3 billion, according to Thomson Reuters I/B/E/S. More fees from Amazon's Prime shopping club and media streaming services, along with growing advertising revenue, also boosted results. Profit, which has traditionally been fleeting at a company that focused on growth, was also ahead of expectations. Net income rose 41 percent to $724 million, or $1.48 per share, marking the eighth straight quarter that the company posted a net profit. Analysts on average were expecting $1.12 per share. Amazon's revenue has soared in recent years as shopping has moved online and businesses have moved their computing operations to the cloud, where Amazon Web Services (AWS) is the biggest player. AWS accounts for a majority of Amazon's operating profit. Some investors worried that mounting competition from rival cloud providers like Microsoft Corp (MSFT.O) and price cuts at AWS would slow the company's momentum. Many also expected Amazon's staggering array of investments - from new warehouses, TV and movie production to research on artificial intelligence - to weigh on profits. Posted by: Besoeker 2017-04-28 |
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