Amazon.com Inc. (NASDAQ:AMZN) has recently shared its first quarter earnings for this year. According to it, “Amazon web services” is reported to have generated whopping sales of $1.57 billion. According to reports, many analysts are now bullish on Amazon.com Inc. shares, where most of them expect the share price would reach the target of $535 per share very soon.
The net revenue earned in this quarter accounts to $5.16 million, which is 49 percent more than the last quarter. In the last quarter AWS made sales of $618 million.
The shares of Amazon rose up by 14 percent shortly after the announcement of the financial reports on Friday. The share price of Amazon has gone up to $445.10. However, Amazon expressed that it acquired a loss of 12 cents per share in the first quarter matching consensus.
The Wall Street expected the first quarter operating income for Amazon to be $10 million, but it turned out to be $255 million. This is way ahead of the expectation by Wall Street.
After the financial earnings report of Amazon was out for this quarter, a statement was received by Amazon CEO Jeff Bezos. He expressed that Amazon Web Services (AWS) is an important arm of the company and it is potentially a $5 billion business and the growth rate of AWS in the market is phenomenal.
The statement by Bezos reflects the progress of AWS and how it sprung up from a humble beginning to a profitable arm of the company. It possesses some high profile customers on board now. Amazon has also clarified that it will innovate the AWS business model and pass on the cost savings to customers for staying a dominant player in the market.
AWS add-ons also include the likes of Amazon Machine Learning, which is a service that does analysis for client’s data in order to reduce their customer churn. This feature is also advantageous to the developers as it helps them to run “Internet of things” apps.
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