For some time now, Amazon has been known for spending and making huge investments in areas like cloud computing and smart devices. It seems as though those investments are finally paying off for Amazon as this week they revealed that for a fifth straight quarter, Amazon is making profit and not just a slight profit, this quarter they earned the biggest profit that they have ever made in their history.
Thus is for the second fiscal quarter of 2016, where Amazon posted a profit of $857 million, or $1.78 a share.
This was on a revenue of $30.1 billion.
Year over year, Amazon’s profit jumped 832 percent, with a sales increase of 31 percent from the same quarter a year ago.
As a result of this news, Amazons stock is up 3 percent and it’s share price is up 40 percent in 12 months.
All of this profit is coming from a range of Amazons businesses, Amazon Web services is a huge segment of this, but their Prime subscription service also continues to grow with 60 million members in the US alone.
Cloud computing posted a profit of $718 from $2.9 billion in sales, which is a 135 increase in profit and 58 percent increase in sales wind the year-ago quarter. This means that AWS is earning more profit that Amazons entire North American retail division, that’s huge.
In terms of Amazons international retail division, they are still posting a loss at $135 million, but that is down 29 percent since Q2 2015. Prime Day was a big reason for that, with worldwide Amazon order up 60 percent since last year’s Prime Day.
For the current quarter, Amazon forecasts sales of $31 billion to $33.5 billion.
Source: Amazon Investor Relations