As more and more retailers turn to online services, Amazon continues to lead the pack.
Amazon is known worldwide for quick and correct deliveries to your home of almost any product you can think of. The infrastructure and way that amazon does this has propelled its savings and revenues to report ints most profitable quarter on April 28. Amazon has been known to miss its profit mark but this time Amazon has surpassed estimates. This caused more than a 12% increase in their stock share price in the after hours of its report.
The biggest reason for this increase is Amazons AWS, providing computer servers for companies such as Netflix and even the CIA.:
"Chief Executive Jeff Bezos has said he expects AWS to reach $10 billion in sales this year, even as Microsoft Corp., Alphabet Inc. and others ramp up pressure. AWS’s operating margin was 28%.
“AWS is having its iPhone moment,” said Colin Gillis, a BGC Partners analyst. “Adoption is spreading, margin is expanding.”"
However, AWS is not expected to reach heavy numbers in its coming years. Although amazon has primarily been a ship to consumer company, the cloud services offered have been a big part of Amazon's revenue this quarter. Amazon has steadily been branching into new territory with these services as well as other cloud based services such as movie and music streaming.
This is a good example of companies focusing on diversifying their product portfolio to bring in the most revenue possible. The product here is cloud hosting for popular websites; relieving the websites of this burden for a fee which Amazon has gained much revenue from.
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