Amazon’s earnings soar as the company’s hardware offerings take center stage
Amazon released their fiscal first-quarter earnings report on Thursday, reporting net revenue of $29.1 billion, up twenty-eight percent from compared to the same time last year. It also posted net income of $513 million, or $1.07 a share, its biggest quarterly profit in the company’s history. Today’s numbers far surpassed Wall Street expectations, and as a result stocks in the company began to rise. In after-hours trading, shares are up 12%.
The online retail giant has been investing more and more into it’s product offerings as of late, and The Verge notes the company is having great success with the recent release of multiple hardware products, including the introduction of the $50 Kindle tablets, the Kindle Oasis -reader and its Echo speaker, featuring the Alexa voice assistant.
Amazon devices are the top selling products on Amazon, and customers purchased more than twice as many Fire tablets than first quarter last year,” CEO Jeff Bezos said in a statement.
Devices are certainly not the most important ingredient in the company’s recipe for success: their cloud commuting services, Amazon Web Services, are in high demand. Leasing out space to the like of Netflix and and Spotify, and continuing to invest in their cloud services will Amazon a competitive edge when going toe-to-toe with Google.
Amazon has also invested heavily in the day-to-day services that got the company where it is today. Amazon Prime now offers same-day package and restaurant delivery services, rolling out in the United States and worldwide.
You can read Amazon’s earnings press release here.