Amazon shares climb on big Q1 earnings

Amazon shares climb on big Q1 earnings

While Amazon's year-on-year losses continued to grow on its global business in the first quarter of 2018, mainly driven by India, it was significantly lower than the peak of over $900 million in worldwide losses that the company saw in the previous quarter and the clip was also much slower compared to the year-on-year jump in losses in Q1 of 2017. It's the second time Amazon's quarterly profit has topped $1 billion.

This year's Amazon shares are now up about 30 percent. Shares climbed in after-hours trading. Prime has increased in price a couple times since its launch, and Amazon has regularly tinkered with other subscription options for its music service and Amazon Fresh grocery delivery. Sales, including more than $4 billion contributed by Whole Foods Market stores that Amazon didn't own a year ago, surged 42 percent, to $51 billion.

He noted that the company is seeing "rises in cost" for providing Prime services, which include shipping perks and video streaming. Cash flow "remains formidable, buttressed by $25 billion in cash and short-term investments, providing ample cushion as the company continues to invest across its many platforms". The company said it has 100 million Prime members, though it did not break out how many of those people view videos on its platform. Its core e-commerce business has posted such low margins - in many cases by Amazon's design, it should be said - that nearly anything new that Amazon does will have higher margins.

Saudi Police Claim Drone Downed Near Royal Palace
Amateur online video showed heavy gunfire in the capital's Khozama district, triggering chances of political unrest in the country.

Amazon Web Services, the company's cloud computing business, now has a $20 billion annual revenue run rate, Bezos wrote in the same letter. Revenue was $6.03 billion, exceeding the $5.9 billion expected by analysts.

Amazon said it expects operating profit this quarter between $1.1 billion and $1.9 billion, up from $628 million a year earlier.

Following a successful earnings call, where CFO Brian Olsavsky announced that Amazon had a $1.6 billion in net income for Q1, he dropped a bombshell for Amazon Prime subscribers.