5 Reasons Why the Amazon Earnings Report was Better than What You're Hearing
Even the second richest man/company in the world can turn in an earnings report that leaves investors a little unsettled. That’s just what happened with Amazon and Jeff Bezos on Thursday evening. Though sales increased 25 percent to $38 billion, Amazon saw its quarterly profit fall 77 percent to “just” $197 million.
The declining profit numbers make total sense when you think about all of the news that has come out about Amazon in the last month or so. The company is expanding at such a rapid pace, adding so many new offerings and programs—and all of those things come with a cost. According to its quarterly report, the company poured money into new warehouses and delivery capacity for its retail business, new data centers for cloud services, and hiring engineers for its Alexa service.
Bezos, who did briefly overtake Bill Gates as the richest person in the world on Thursday before a slight stock selloff, said the company remains “heads down and focused on customers.”
Despite the concern over the lack of operating income, Amazon still did have a pretty decent quarter. Walker Sands and its pool of experts reached out to offer five reasons why Amazon’s sales continued to grow at a fast pace.