REUTERS / Abhishek N. Chinnappa (Abhishek Chinnappa / Reuters)
Amazon.com said Thursday that profits had more than doubled to $ 1.6 billion in the first quarter and stock prices were at an all-time high gone up. 19659003] The company's rapidly growing advertising and cloud companies have driven much of their growth, contributing billions in profits for the second consecutive year. Total revenue increased 43 percent to $ 51 billion compared to $ 35.7 billion a year ago.
Amazon has also announced plans to increase Prime Membership Fee for new members by 20 percent from May 11 to $ 119 annually. Existing members renew their Prime membership The company said earlier this month that it has 100 million Prime members, the first time it has published the number.
"The Prime program continues to be a great asset to us," said Brian Olsavsky, chief financial officer of Amazon, on Thursday at an analyst meeting.
The Prime Membership Program was an important cornerstone of Amazon's flagship retail store. Prime members will now receive a free two-day shipment of 100 million items, up from 20 million in 2014.
Amazon's shares increased by as much as 7 percent to a record $ 1,619 in after-hours trading and wiped out the Recent losses include a series of tweets by President Trump, who attacked the company. The president also launched a study on whether Amazon gets a deal from the US postal service too well. (Jeffrey P. Bezos, the founder and CEO of Amazon, also owns the Washington Post.)
Amazon, founded 24 years ago as an online bookseller, has evolved into a multi-billion dollar tech juggernaut number of Industries including food, private label clothing and movie production. Earlier this year, Amazon announced that it would team with Berkshire Hathaway and JP Morgan Chase to start their own independent healthcare company.
"Amazon continues the trend of investment-driven revenue growth," Charlie O'Shea, lead retail analyst for Moody's, wrote in a note to clients. Cash flow remains huge and is supported by $ 25 billion in cash and short-term investments that provide ample cushioning as the company continues to invest on its many platforms. But its success has come at the expense of real costs Retailers and several competitors have complained to government officials about the company becoming too big, but Amazon's success in so many different businesses has not been easy for the regulators to handle Since federal antitrust law is largely focused on consolidation in various industries.
Amazon Cloud Computing, the cloud platform, continued to account for the largest share of the company's profits, with an operating margin of 26 percent in the last quarter compared with 3.8 percent for the company as a whole, AWS revenue now rose 49 percent to $ 5.44 billion as thousands of new companies signed up for the service.
"[Amazon Web Services] had the odd advantage of a seven-year-old Projection before facing a like-minded competition The team has never slowed down, "Bezos said in a statement. "That's why you've seen this remarkable acceleration in AWS growth for two quarters in a row."
Earlier this week, Amazon announced that it would deliver packages directly to specific vehicles that are parked at home, in offices, or in the public area. The program, originally available to Prime members in 37 cities, is the latest initiative from the Seattle-based company to help customers make the online ordering process.