UNITED STATES (OBSERVATORY) – The world’s largest Internet retailer Amazon.com Inc. The company’s net profit more than doubled in the first quarter of 2018, in part due to the strong performance of the cloud computing division of Amazon Web Services (AWS).
Net profit of the online retailer Amazon in the first quarter of 2018 increased by 2.25 times in annual terms and reached $ 1.6 billion, or $ 3.27 per share, compared to $ 724 million, or $ 1.48 per share , for the same period last year.
The revenue increased by 43% to $ 51 billion from $ 35.7 billion. Experts interviewed by FactSet, on average, forecast Amazon’s quarterly profit of $ 1.24 per share on revenue of $ 49.9 billion.
The revenue growth rate continues to accelerate: in 2017, they accounted for 30.8%, in 2016 – 27.1%, in 2015 – 20.3%. The company’s operating profit in the past quarter soared 92% to $ 1.9 billion.
In the AWS division, operating profit jumped 57% to $ 1.4 billion from $ 890 million a year earlier. The revenue of this business exceeded $ 5 billion for the second consecutive quarter, it increased by 49% to $ 5.44 billion.
The bulk of Amazon’s revenue comes from the e-commerce unit, but the operating profit in the previous quarter was higher in much smaller-scale AWS operations.
E-commerce business in North America in January-March increased by 46% to $ 30.73 billion, abroad – by 34% to $ 14.88 billion. Operating profit in North America jumped by 93% to $ 1.15 billion, but abroad, an operating loss of $ 622 million was recorded.
Earlier this month, Amazon reported that the number of subscribers to the Amazon Prime premium service in the world exceeded 100 million people. In the first quarter, Amazon’s revenue in the subscription services segment, including Prime and Amazon Music, rose 60% to $ 3.1 billion.
Amazon shares gained 4% on the regular session on Thursday and grew by 7% on additional auction. Since the beginning of this year, the price of securities of the company has increased by almost 30%, while the Dow Jones index decreased by 1.6%.
By the close of the market on April 27, Amazon’s capitalization was $ 736 billion, the company ranked second in the world on this indicator, behind only Apple ($ 833 billion). In third place – Microsoft ($ 726 billion), on the fourth – Alphabet (parent company Google) ($ 724 billion).
Jeff Bezos, who is already the world’s most wealthy man, became richer by another $ 12 billion after publication of the report – his current state of Bloomberg estimates at $ 134 billion.
In the event that the rise in Amazon’s share price continues, the company will soon be able to push Apple, experts say.