Amazon sales jump 38 percent, profit hits record

Amazon sales jump 38 percent, profit hits record

Amazon, which shipped over 5 billion items worldwide through its subscription-based Prime service in 2017, said its net sales rose to $60.45 billion in the reported quarter from $43.74 billion a year earlier.

Inc. reported on Thursday a profit of nearly $2 billion, its largest in history, as the e-commerce giant attracted millions of new Prime customers during the holiday season and as changes in the tax law across the USA added to the bottom line.

Even though Amazon stocks rallied past its record fourth quarter results with $1 billion of profits, the ecommerce giant ended 2017 with an global loss of $3 billion - largely attributed to its India spends.

The company's fast delivery, like its two-hour Prime Now service, helped win over shoppers eager to avoid the crowds of big-box retailers.

That figure is expected to rise this quarter in part because the company recently raised the fee for month-to-month Prime plans, affecting some 30% of subscribers, according to analysts at Cowen & Co.


The company spent $13.7 billion past year on the 460-store Whole Foods grocery chain to become a more serious player in the $800 billion grocery market and enter a brick-and-mortar retail business dominated by Walmart. The number of products eligible for Prime service in India increased to more than 25 million items a year ago.

Amazon Web Services, the cloud computing division of Amazon, saw major gains in fourth quarter 2017 earnings Thursday as the tech giant titans its lead in the cloud wars. It equips warehouses with robots, builds new data centers, invents new products and updates devices like its voice-activated Echo digital speaker, which Amazon sees as key to getting a foothold in customers' homes and vehicles.

Amazon founder Jeff Bezos has committed investments to the tune of Dollars 5 billion for the Indian market.

Amazon said it expects operating profit in the current quarter of between $300 million and $1 billion.

The company has become notorious for running on a low-profit-margin. Amazon's global headcount is up 66% from a year ago at 566,000 full-time and part-time employees, thanks to a hiring spree and an influx of workers from Whole Foods Market.

Related:

Comments

Latest news

Acquires New Holdings in Oracle Co. (ORCL)
Monetary Mgmt Group Incorporated Incorporated holds 1.53% of its portfolio in Oracle Corporation (NYSE:ORCL) for 75,160 shares. The enterprise software provider reported $0.70 EPS for the quarter, topping the Zacks' consensus estimate of $0.68 by $0.02.

Haas grabs two-stroke lead in Phoenix
Americans make up the top seven on the leaderboard, with Chesson Hadley, Scott Stallings and Chris Kirk all eight under. He was a 36-hole co-leader at the 2017 Puerto Rico Open (68-65), eventually finishing T2 (70-67).

QEP Resources (QEP) Research Coverage Started at Deutsche Bank
Taking current value along prior value is a smoothing technique similar to that used in calculating an exponential moving average. The stock has actually weakened in the past week, as the company has gathered a -12.28% return in the past 5 trading days.

'Race 3' team wraps up Mumbai schedule
Race 3 will hit the screens on Eid (15 June) this year, continuing Salman Khan's tradition of releasing a film on the festival. After completing the Mumbai schedule, the team of Race 3 will be heading to Dubai and Abu Dhabi in January 2018.

90 people feared dead after migrant boat capsizes off coast of Libya
One child was in the group, as well as two pregnant women, one of whom is likely to give birth in the coming days, said Headon. An estimated 246 migrants died in the month of January in Mediterranean crossings, while 23 deaths were recorded in December.

Other news