Amazon Profit Crushes Estimates As Cloud-Service Revenue Soars

[HardOCP News]

While everyone else seems to be turning in disappointing earnings, Amazon seems to be doing just fine. In fact, the company did so well that its shares were up almost thirteen percent after the closing bell on Wall Street yesterday.

The results draw a sharp contrast to the disappointing fourth quarter Amazon reported in January, which renewed worries among some shareholders about the company's comparatively thin profit margins. Shares of the world's biggest online retailer jumped nearly 13 percent to $679 in extended trading on Thursday. Amazon's performance also assuaged concerns about a broader slowdown among tech and internet companies after Apple (AAPL.O), Microsoft (MSFT.O) and Intel (INTC.O) all reported disappointing earnings.

 

[Dwango]

It always amuses me when some analyst comes out and says, "Amazon doesn't make any money! At some point they'll have to start charging more!" and then Amazon comes out with an earning report that says otherwise. Yeah, Amazon may not make much of a profit selling you shit you don't really need for Walmart prices and then shipping it to you for "free" in two days but I'm pretty sure they're doing fine with the other parts of the business.

 

[Deleted member 184142]

It always amuses me when some analyst comes out and says, "Amazon doesn't make any money! At some point they'll have to start charging more!" and then Amazon comes out with an earning report that says otherwise. Yeah, Amazon may not make much of a profit selling you shit you don't really need for Walmart prices and then shipping it to you for "free" in two days but I'm pretty sure they're doing fine with the other parts of the business.

Most of that reason however has been that Amazon has been almost 100% focused at growing, not turning a profit, they will have to at some point, but most of that money that others would show as profit, has been getting tossed back into the company and other new divisions, such as the cloud services.

 

[Uvaman2]

shiiit that's a big business if all by itself (cloud service) amazon might re structure ala alphabet i imagine. they must know what they are doing.

 

[steakman1971]

Amazon been a weird stock. I bought some years ago, never seemed to do much, so I sold it. As a long term play, it is probably decent. hell, with 1 hour shipping becoming a thing, sell your Walmart/Target/Best Buy (which I own none) - Amazon will utterly destroy them.
We use AWS a lot - great platform and its affordable. Amazon Alexa is an unexpected brilliant platform. I haven't bought one yet, but am blown away it came from Amazon. The reason I'm somewhat negative - remember the Fire Phone? About that.
Good for them. Maybe its time to reconsider my investment options...(which usually means I do something stupid and lose money )

 

[Ordeith]

AWS up 65% while Azure went up 120% Microsoft is still a distant second, but they are showing much faster growth. Amazon better keep an eye on that rear view.

 

[LightningCrash]

AWS up 65% while Azure went up 120% Microsoft is still a distant second, but they are showing much faster growth. Amazon better keep an eye on that rear view.

They don't have anything to worry about. Azure is a distant second in so many ways other than revenue.

 

[Ordeith]

They don't have anything to worry about. Azure is a distant second in so many ways other than revenue.

Not only is that completely untrue, it is also a dangerous belief to hold if you're Amazon. Keep thinking that and you'll end up wondering what the hell happened when the competition passes you by.

 

[LightningCrash]

Not only is that completely untrue, it is also a dangerous belief to hold if you're Amazon. Keep thinking that and you'll end up wondering what the hell happened when the competition passes you by.

They're such a pain in features, consistency, performance and price... they're going to be a distant second for a long time. Do you know how long it took them to support DH Groups > 2 and PFS?