Cloud and Retail Giant Amazon Beats Forecasts

May 1, 2016
Cloud and Retail Giant Amazon Beats Forecasts
Cloud and retail giant Amazon has beaten market forecasts for the first quarter of 2016, with a 28% increase in sales. Amazon, which has headquarters in Seattle, Washington, United States, was established in 1994. The company is a global brand focusing on cloud and ecommerce activity. Its news prompted the company’s shares to increase by 10% in after hours trading, with last Friday’s share price going up $677.74 at it highest point.

Amazon brought in a profit $513 million during its first quarter, almost double forecasts. The figures were a response to the huge success of its Amazon Web Services (AWS) cloud-computing activity and growth of its Amazon Prime subscription service (which includes its instant streaming service Amazon Video). AWS alone increased activity by 64% in the period, a result of the company’s substantial investment in the area. Its revenue for the period was reportedly $29.1 billion.

This is the company’s fourth straight profitable quarter and, while the $2.57 billion revenue AWS generated was only around 9% of revenue income, it accounted for 56% of Amazon’s profits. Amazon’s ‘Media’ activity generated $5.7 billion during the quarter, an increase of 8%, while its ‘Retail’ activity generated $20.5 billion, an increase of 31%.

Do you know of any other companies bringing in good profits? Let us know the details. Add your comments below.

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