Today Amazon posted its latest quarterly results showing that record profits alongside strong sales have bolstered its revenue growth to the fastest rate in five years.
The Seattle-based company is enjoying a surge of customers subscribing to the company with it’s new video streaming service ‘Prime’ which is urging customers to spend more on site. As such, the cloud unit is the fastest growing branch of the business and is now a key driver for economic growth.
Analysists had predicted $29.6bn revenue but the retail giant was ready to crush expectations for the fifth quarter in a row at $30.4bn. As a result, the revenue averaged a profit of $1.78 per share up 19 cents compared to the same period last year.
Amazon recorded earnings of $857m in the Q2 yet it announced that operating income may drop for the current quarter to near $650m as the company seeks to increase investment in 18 warehouses compared to 6 in 2015 and producing original content for its Prime service.
There was also high numbers in the company’s web services revenues that leaped 58.2% to $2.89bn. The rise came alongside a surge of sales in the company’s biggest market, North America that grew up to 28% to $17.67bn during the quarter.
In July Amazon’s share price reached $756 setting new heights for the company, but today that number stood at $768 up 2% from its close.
At 8:19am GMT-4 Amazon.com Inc, traded at 752.61 + 15.94 (2.16%) with its pre-market value standing at 769.01 + 16.40 (2.18%)
29/07/2016