Description: Helped by its fast-growing Amazon Web Services business, the company jumped to the most profitable quarter in its nearly 22-year history.
Date: April 28, 2016
Amazon often flip-flops between showing profits and losses, depending on how aggressively it decides to plow money into big new business bets. Investors have granted the company much wider leeway to do so than other technology companies of its size often receive, because of its history of delivering outsize growth.
For the first quarter, which ended March 31, Amazon reported net income of $513 million, or $1.07 a share, up from a loss of $57 million, or 12 cents a share, in the same period a year ago.
Revenue at the company rose to $29.13 billion from $22.72 billion a year ago.
Amazon’s share price jumped more than 12 percent in after-hours trading after the results were released. Investors were happy to see the company show profits after the disappointing run of reports from Apple, Google, Microsoft and Intel.
“The fact that they’re profitable is a big deal,” said Christian Magoon, chief executive of Amplify Investments, a fund manager that counts Amazon as a top holding. “It’s more of a big deal after some of the disappointing numbers from Apple and others.” Read Rest of Story
1. What is making Amazon more profitable now?
2. ” Amazon is the rare technology company of its size to still deliver double-digit revenue growth.” Do you feel that AWS can keep them profitable going into the future Why or Why Not?