- General
- July 27, 2018
- 3 minutes read
Amazon reports record quarterly profit as it tops Wall Street estimates on cloud computing and advertising soar
image credit : Flickr/Doc Searls Tech and e-commerce giant Amazon’s shares are up about 4% hitting an all-time high as…
image credit : Flickr/Doc Searls
Tech and e-commerce giant Amazon’s shares are up about 4% hitting an all-time high as the company reported record Q2 profits of $2.5 Billion marking its most profitable quarter as a company thanks to bigger revenues from its higher-earning segment consisting mainly of its cloud computing and advertising unit.
Amazon always known to invest heavily in its e-commerce and logistics startups demonstrate quality business tactics to make up for its high expenses on package delivery and video streaming by building up higher profit reaping units and also controlling its expenses.
Amazon’s cloud computing unit AWS has been the major leader in the cloud computing space since its start 12 years ago having grown to counting major companies as its customers including the likes of Airbnb, Adobe, Autodesk. BMW, Canon, NASA, General Electric and its video streaming competitor Netflix.
Amazon’s advertising business has also been on the rise as more customers flock to its platform to boost sales for the products they sell through its e-commerce service with revenues from this category and other items coming at $2.2 Billion.
AWS’ sales rose 49% to $6.1 Billion indicating very good growth for the company which recorded total net sales of $52.89 Billion.
Several analysts and investors have upped Amazon’s price targets on the verge of this Q2 results which shows Amazon’s ability to grow heavily and also mint profits from its business operations.
Amazon as of writing is trading at around $1,825 a share giving the company a record market cap of $911 Billion placing it on par with Apple’s $945 Billion market cap as both companies race along with Google parent Alphabet to be the first $1 Trillion tech company.
