Categories AlphaGraphs, Earnings, LATEST, Retail

Amazon stock gains 7% after Q1 results crush street view

Amazon (AMZN) today said its first-quarter profit more-than-doubled as revenues rose sharply, supported by the cloud division, surpassing market expectations. Shares of the company gained around 7% in the after-hours, following the earnings announcement.

Net income jumped to $1.6 billion, or $3.27 per share, from $724 million, or $1.48 per share, in the first quarter of 2017, and far exceeded analysts’ expectations.

First quarter revenues grew 43% to $51 billion. The top-line includes sales of Whole Foods, which was recently added to Amazon’s fold.  Meanwhile, the benefit of strong revenue growth on earnings was partially offset by a 42% increase in operating expenses.

Sales in North America climbed 46% year-on-year, and international sales grew 34%. Contributing significantly to the overall performance, sales of Amazon’s cloud unit AWS surged 49% to $5.44 billion during the quarter.

“AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down. As a result, the AWS services are by far the most evolved and most functionality-rich,” said Amazon CEO Jeff Bezos.

Encouraged by the robust results, the e-commerce firm said it expects second-quarter sales to grow 34-42% year-over-year to the range of $51 billion to $54 billion. The company sees operating income between $1.1 billion and $1.9 billion for the quarter.

With a 49% sales growth, Amazon’s cloud unit AWS contributed significantly to the overall performance

Recently, Amazon and its chief Bezos had come under fire from President Trump, who in a series of Twitter posts accused the company of defaulting on tax payments. Trump alleged that Amazon’s phenomenal growth was a cause of concern for traditional retailers. The Prez also targeted the Bezos-owned Washington Post for allegedly spreading propaganda.

Earlier this month, Amazon entered into a partnership with rival retailer Best Buy (BBY) to sell the advanced version of its Fire TV Edition smart TVs to customers in the US and Canada. This week, the company launched a unique facility to have merchandise delivered in customers’ cars.

Yesterday, eBay (EBAY) reported a 58% fall in first-quarter earnings to $0.40 per share, owing mainly to higher expenses and tax-related charges. Adjusted earnings were up 9%.

Most Popular

WMT Earnings: All you need to know about Walmart’s Q1 2023 earnings results

Walmart Inc. (NYSE: WMT) reported its first-quarter 2023 earnings results today. Total revenue rose 2.4% year-over-year to $141.6 billion, beating market expectations. Revenue growth was 2.6% in constant currency. Consolidated

Take-Two Interactive (TTWO) Q4 earnings decline, revenue up 11%

Gaming company Take-Two Interactive Software, Inc. (NASDAQ: TTWO) announced fourth-quarter 2022 results Monday after the closing bell, reporting an 11% revenue growth. Fourth-quarter revenues rose to $930.0 million from $839.4

Pinterest (PINS): Here are a few points to keep in mind if you have an eye on this stock

Shares of Pinterest Inc. (NYSE: PINS) stayed in green territory on Monday. The stock has dropped 40% year-to-date and 62% in the past 12 months. There is a mixed sentiment

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top