This week has been a rollercoaster. On the same day that Facebook had the worst day in stock history, the Amazon earnings report came out, and the company reported its biggest quarterly total ever.
Amazon Earnings Report
Thanks to Amazon’s core retail business, the company saw an increase in net income and revenue. No surprise, the AMZN stock jumped in after-hours trade.
A Few Numbers to Know:
- Net Income: $2.5B.
- Revenue: $52.9B. This is up from the $37B Amazon reported in 2017, but it was still lower than analysts had forecasted.
- In North America, Amazon disclosed an operating profit of $1.84B. This is huge because it is more than 4x the $436M seen in the same quarter in 2017.
- In the rest of the world, Amazon disclosed an operating loss of $494M. This is good, being that it is up from a loss of $724M in 2017.
- The retail business saw $46.78B in revenue, which is lower than analyst forecasts (at least $47B was expected).
What Amazon Had to Say
After the Amazon earnings report came out, there was a conference call. There, CFO Brian Olsavsky was asked why there had been higher profit totals, and Olsavksy said that there were a number of factors that played into it, such as:
- An increase in online ad sales.
- High-margin business.
- The pace of hiring. Note that this is not a long-term thing (less external hiring), but it worked for this quarter.
- Better “efficiencies in operations infrastructure costs.”
The Amazon Stock (NASDAQ:AMZN)
Even though Amazon closed the day down 2.98%, the stock worked its way into the green after the Amazon earnings came out. In the after-hours session, Amazon is up 3.26%.
The Takeaway
What do you think about the Amazon earnings report? Were you surprised by anything? How do you feel about the retail business’ revenue? Let us know what you think in the comments.
>> Facebook Earnings: Miss On Revenue and DAUs; Stock Plunges
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