BE­ZOS’ AMA­ZON PROFIT SOARS TO A RECORD ON CLOUD

The Financial Express - - FRONT PAGE -

Seat­tle, April 29: Ama­zon.com’ssale­sand­profit topped es­ti­mates on ro­bust de­mand for quick-turn­around de­liv­ery, cloud ser­vices and gad­gets like the Kin­dle and Echo, adding to ev­i­dence the ecom­merce gi­ant can make money even as it in­vests heav­i­ly­in­fu­ture­hard­ware,soft­ware and en­ter­tain­ment.

The re­sults were a val­i­da­tion of Jeff Be­zos’s cus­tomer­centric phi­los­o­phy and the Ama­zon Prime mem­ber­ship model, send­ing the shares up the most in al­most a year Fri­day morn­ing. The co-founder and CEO con­tin­ues to in­vest to add ser­vices to the com­pany’s $99-a-year sub­scrip­tion pro­gramme by de­liv­er­ing prod­ucts in as lit­tle as an hour and cre­at­ing ex­clu­sive video pro­gram­ming for on­line stream­ing. Ama­zon is also work­ing to keep­con­sumersen­gaged­with new prod­ucts like low-cost tablets and the Echo voice-ac­ti­vated home as­sis­tant.

The com­pany posted its big­gest-ever net in­come and said first-quar­ter sales climbed 28%, in­clud­ing a 64% rise at Ama­zon Web Ser­vices, its cloud-com­put­ing di­vi­sion. In­vestors have been watch­ing for signs that Be­zos is bal­anc­ing his am­bi­tious spend­ing with their de­sire for con­sis­tent prof­its. Firstquar­ter net in­come was $513 mil­lion, or $1.07 a share, and rev­enue climbed 28% to $29.1 bil­lion, the Seat­tle-based com­pany said .

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