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Amazon's profit increases through its Web Services

23 October 2015 0

Amazon.com Inc results have recorded an abrupt change. The e-commerce company witnessed a surprise profit for the second quarter. And, the country that has recorded maximum sales is North America.

North America, the largest market for the world’s biggest retailer has given a rise of around 28.3% in the sales, expected to bring $15.01 billion to Amazon.

Amazon says that the customers had ordered 34.4 million items worldwide during the one-day sale for members.

One major part that put this success into Amazon’s domain is their cloud computing business. Interestingly, cloud computing business has also lifted up the earnings of Microsoft as per recent reports shared by the company itself.

Amazon’s Web Services (AWS) have recorded an increased amount of net sales in the second quarter of the year. Amazon has 1 million active customers from 190 countries who are associated with their webs services. And, surprisingly, the association rose more than 78% in the quarter to $2.09 billion. Total net sales rose from 23.2% to $25.36 billion.

"There are questions about what's the sustainable margin for this? Are we seeing just a hyper growth phase now? But for right now, AWS is driving the train, and it's going to for the near future," said BGC Partners analyst Colin Gillis.

Reports clearly claim that currently Amazon’s web services are the champ and will continue to be the same in coming future as Cloud computing is a future technology. Amazon is also investing in Internet of Things (IoT). It is expected that this investment would drive more sales in coming years too.

With such rich and profitable results, Amazon forecasts that the net sales growth could further rise to 25% in upcoming holiday shopping quarter. According to Thomson Reuters, analysts had been expecting a revenue of $35.16 billion.

Reportedly, Amazon’s shares rose to $625 in late trade after closing at $563.91 on last Thursday.


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