Amazon earnings excite – the share price climbs
Amazon smashed Wall Street’s expectations when it reported its latest quarterly earnings last week. The company saw revenues of $60.5 billion – an easy beat over the $59.8 billion that analysts had expected. Within that figure is a standout performance from the company’s rising star – its cloud computing division, Amazon Web Services (AWS). AWS brought in $5.11 billion in revenue against predictions of $4.97 billion.
The company’s net income for the quarter was $1.9 billion – more than double the same figure in the previous year. Although the company stressed that it was important to note that these earnings include a $789 million tax benefit due to changes in the U.S. tax code.
Amazon goes from strength to strength – share price up 22% in the first month of 2018
SOURCE: Yahoo Finance
Speaking on the company’s earnings call, vice president and chief financial officer Brian Olsavsky gave listeners a preview of where Amazon was planning to invest in the coming year.
He told analysts: “We're very happy with both the progression in new services and features that we've been able to bring to customers and also their response with continued geographic expansion and continuing to again build on our tech teams and our sales teams. So that would -- that expense is going to continue and likely increase. Prime benefits will continue to increase as well. Prime Now -- excuse me, Prime Video, Prime Now, AmazonFresh, all of our major Prime benefits, we continue to expand globally.”
Another area the company will be putting more money is its devices. In a statement over the earnings, Amazon’s founder and CEO, Jeff Bezos, said: "Our 2017 projections for Alexa were very optimistic, and we far exceeded them. We don't see positive surprises of this magnitude very often — expect us to double down."
Dominion holds Amazon in its Global Trends Ecommerce Fund
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