Propelled by the gains in the cloud computing zone, the new business segments and advertising, US retail giant Amazon’s first quarter Q1 profit has doubled up to be stood at $3.6 billion, extending the Amazon’s trends of rising profitability.
According to a recent update, which has topped analyst forecasts, the overall revenues for the company rose to $59.7 Billion from $17.7.
The Seattle-based Amazon Inc stated, “Revenues from online sales stood up at 10 billion percent, whereas there was a huge leap of around 40 percent for the money received from the subscription services amount and Amazon Web Services cloud platform.”
The overall shares of Amazon Inc got expanded from the origins in e-commerce to cloud services, streaming media, artificial intelligence, and brick-and-mortar grocery stores had experienced a considerable dipping and wobbled in a lot of after-market trades returning to a modest gain of 0.6 percent.
As rightly pointed out by the Analysts, Amazon Inc is surging ahead in its digital advertising revenues market primarily dominated by the presence of its tech rivals Google and Facebook.
According to Andrew Lipsman of the research firm eMarketer, “Amazon got turned into a complete powerhouse quarter and is fuelled mainly by strength in cloud and advertising businesses that keeps inflating the company’s operating margins by two folds.”
Advertising balance appears full effect for the Amazon and will continue to spur the growth of the company in the near future. The AWS’s Impulsive stealth force continues to be the most profitable story.
However, amidst all the positives, “Amazon’s net product sales are decelerating, and this trend may be expected to continue as a result of its giant size coupled with the other retailer competition across the regions, as stated by Neil Saunders-of research firm Global Data Retail.”
He further adds that “Amazon will face the toughest competitive pressure like never experienced by them before as this trend will keep accelerating forward and would keep the firm grounded amidst the mounting economic slowdown and deceleration in overall product sales.”
Overall Amazon reported a net income of $3.56 billion, or $7.09 per share for the first three months in the Q1 and thus beat the conventional norms of $4.61 per share as predicted for the first Quarter.
Amazon which has now powered video streaming services on Amazon Prime and Netflix, and for digital scrapbooking site Pinterest and many such companies, thus, seeking the revenues soaring 41% from same Q1 last year.
Amazon’s USP-the fastest growing and unique advertising business has already become quite a sensation and is quite an innovative as well a revenue generation technique by luring customers to search, sell and buy a varied mix of brands.
For the current quarter ending in July, Amazon said it expects revenue in the range of $59.5 billion to $63.5 billion. Analysts expected revenue of $62.53 billion.