Amazon quarterly profit jumps 12-fold to $2.5 billion

Amazon just posted an insane earnings-per-share beat

Amazon said Thursday that it earned$2.5 billion in profit for the three months ending in June, a staggering jump from the $197 million it posted in the same period previous year.

After a sizable dip in March and April this year, seemingly related to USA president Donald Trump's criticism of the firm, the company's stock resumed an nearly uninterrupted multi-year climb.

Amazon reported net income of $2.53 billion, or $5.07 per share, in the three months ending June 3, blowing past the $2.48 per share Wall Street analysts expected, according to FactSet.

The online giant saw net sales up 39% to $52.89bn (£40.3bn) from $37.96bn (£29bn) a year earlier, driven by a rise in online shopping and higher demand for its cloud services. Sales from AWS were up 49 per cent from Q2 2017's total of $4.1bn. And despite sitewide problems during the first few hours of Prime Day, Amazon says small- and medium-size businesses generated $1 billion in sales during the first 25 hours or so of the annual sales event. Worldwide sales grew by 27% to $14.6 billion from $11.4 billion in the second quarter.

Inc. on Thursday reported a record profit and forecast plowing past analyst estimates, strutting how its lucrative cloud computing and advertising businesses were helping it overcome the high costs of retail.

Angling for advertisers Highly profitable ad sales were a bright spot last quarter.

Amazon stock is now rallying in after-hours trading, up over 2%.

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Analysts were expecting the company's quarterly revenue to hit $53.41 billion.

Though Amazon's financial results and forecasts are decidedly more optimistic than Facebook's were, the company has not entirely evaded the increased political scrutiny now facing the US's major technology companies.

Despite the phenomenal numbers for AWS, CEO Jeff Bezos chose to use the quarterly report to talk up another Amazon product: the Alexa virtual assistant and its ongoing efforts to expand both its range of devices and its geographic availability.

But Amazon's eye-popping growth has also led to increased scrutiny over the possibility that the company's market dominance gives it monopoly power. "And we didn't come out with a product at that particular point in time that was differentiated enough for customers such that it got the momentum that we needed to see.it just didn't resonate to the next level of masses".

The increased cost of Amazon Prime, announced at the end of the last quarter, did not appear to damage subscription revenues, which grew 57% to $3.4bn. The deal is expected to close later this year.

The markets were jittery ahead Thursday after Facebook spooked investors by warning of slowing sales growth in the second half of the year as it focuses on "putting privacy first". While Amazon did not disclose new stats for the quarter, more than 100 million people pay for Amazon's subscription service, which includes two-day shipping and access to a growing slate of TV shows and movies.

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