Amazon profit jumps, revenue misses mark
SAN FRANCISCO:
Amazon reported on Thursday that profit leapt during the year-end holiday shopping season, but the tech giant saw shares sink as revenue fell shy of high expectations. While revenue rose to $43.7 billion from $35.7 billion in a similar year-over-year comparison, Wall Street had expected Amazon to take in more cash during the key holiday shopping season. “Amazon is usually a retailer that operates at full volume, the noise of its sales growth a clarion call in an often muted retail sector,” said GlobalData Retail analyst Anthony Riva. “However, this quarter that volume seems to have been turned down a couple of notches.”
Amazon shares were down more than four percent to $805.40 in after-market trades that followed release of the earnings report. Net income for the quarter was $749 million, compared with $482 in the same period a year earlier, according to earnings figures. While Amazon is known for its huge online retail operations, it is also a major provider of cloud computing, and is a rival to Netflix in streaming video. It has been ramping up efforts in artificial intelligence with its Alexa-powered speakers and partnerships with makers of connected devices.
Amazon founder and chief executive Jeff Bezos said the company is looking for growth via its “Prime” subscription service, which gives customers access to video, music and other services and free two-day shipping. Bezos said in a statement that Prime Video was now available in some 200 countries and territories. — AFP