Amazon shares up as quarterly revenues surge

Amazon: For every dollar of op. profit going into Bezos' pockets, 73 cents came from AWS

Amazon profit more than doubles; shares soar

Amazon's first-quarter profit more than doubled from a year ago, fueled by the growth of online shopping and the cloud-computing service it provides to businesses and government agencies.

The estimate among analysts was that Amazon's profit would shrink from the prior year. The stock further gained $95.04 or 6.26% in the after-hours trade.

Its earnings per share were nearly triple the $1.24 per share analysts expected, according to FactSet.

The move comes only a few months after it raised prices in January for monthly Prime memberships from $10.99 to $12.99.

Amazon Inc.'s share had a good day on Thursday afternoon, when its shares surged 6.3 percent to $1,614 in extended trading in NY.

Sales from Amazon's Web Services division drove much of the growth, as they were up 49 percent to $5.4 billion.

Amazon CEO Jeff Bezos, the reigning richest person in the world, revealed in a letter to shareholders last week that the company has surpassed 100 million Amazon Prime subscribers. Prime, which offers unlimited two-day shipping and video streaming, cost $75 when it launched in 2005.

Profit hit $1.6 billion, or $3.27 a share, compared with $724 million, or $1.48 a share, a year ago.

If you're an Amazon Prime subscriber, then we've got some bad news for you.

On a conference call with analysts Thursday, Amazon CFO Brian Olsavsky announced plans to help offset the rising costs of investments like original programming by raising the price of Amazon Prime. 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.

"The significant acceleration in Other revenues suggests Amazon's advertising ambitions continue to ramp quickly, and is now large enough to drive upside in Amazon's margin profile", said Baird Equity Research analyst Colin Sebastian in a note. "We'll continue to invest in India where we're seeing great progress with both sellers and also customers".

Latest News