AMAZON GUTS UPSURGE IN PROFIT SALES

AMAZON GUTS UPSURGE IN PROFIT SALES

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**FILE** In this Dec. 1, 2008 file photo, an Amazon.com employee grabs boxes off the conveyor belt to load in a truck at their Fernley, Nev., warehouse. Amazon.com Inc. said Friday, Dec. 26, 2008, that the 2008 holiday season was the online retailer's "best ever," with more than 6.3 million items ordered and 5.6 million units shipped during its peak day on Dec. 15. (AP Photo/Scott Sady, File)

AMAZON GUTS UPSURGE IN PROFIT SALES

– Amazon has reported a profit of $513m made in its first quarter, helped by a 28% jump in sales.

– Amazon’s cloud services unit was an important source of sales growth.

jeff bezos
Jeff Bezos, C.E.O. Amazon

AMAZON GUTS UPSURGE IN PROFIT SALES

At Amazon, a profit of $513 million (£351m) has been made and reported in the company’s first year quarter. This was facilitated by a 28% jump in sales.

Sales hit $29.1bn for the three months to the end of March, helped by rising sales of its Kindle reading devices and Fire tablet computers.

More than the expectations of analysts, both sales and profits were higher as Amazon shares surged during after-hours trading.

According to the company, there was a strong growth in number of customers for its Key service, including free delivery and TV shows.

Following BBC, the results were a positive sign for investors who had been rattled by disappointing earnings from Apple and Microsoft.

“It did restore my faith,” said Dan Conde, an analyst at the Enterprise Strategy Group. It was also recorded that Amazon’s cloud services was essential as a source.

Cloud businesses are known for data storage space and software services to companies, and that is Amazon’s fastest growing unit.

Their revenue rose 64% year-over-year, reaching $2.5bn.

AMAZON GUTS UPSURGE IN PROFIT SALES

Investors have been observing Amazon’s cloud operation closely, particularly after one of its biggest customers, Apple, announced it would be moving some of its business elsewhere.

Since the beginning of the year, Amazon has added new televisions shows and films to its major service, which assisted to attract new users.

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In April, Amazon presented selections to pay monthly for the service. The idea is part of an effort to contend with video streaming services like Netflix and Hulu.

The company also credited the amplified number of key members to the expanded list of products eligible for free two-day shipping.

Amazon did not feature sales of devices like the Kindle and Fire table. But it claimed that the division has been growing.

“Amazon devices are the top selling products on Amazon, and customers purchased more than twice as many Fire tablets than first quarter last year.” Chief executive Jeff Bezos said.

AMAZON GUTS UPSURGE IN PROFIT SALES