Amazon reported a robust financial performance for the second quarter, posting a record profit of $2.5 billion which is up from “just” $197 million in the previous year.
Incredible Amazonian Growth
Its net sales increased 39% to $52.9 billion as a result of strong online sales and demand for its cloud services.
The company’s revenue from Amazon Web Services (AWS) reached $6.11 billion, exceeding financial analysts’ expectation of $6 billion.
Happy with the new customers of AWS and how it has helped expand their businesses, Brian Olsavsky, chief financial officer at Amazon, said:
“Again, the business has accelerated the last three quarters, and we’re seeing great signs in a number of areas. We’ve added 800 new services and features so far this year; that’s an accelerated pace from last year, which was a record year. We see customers have migrated more than 80,000 databases using the AWS Database Migration Service.” Brian Olsavsky, Chief Financial Officer at Amazon
Amazon also reported that its operating income jumped to $3 billion from $628 million during the same period last year.
It’s strong growth is evidently hinged on its uninterrupted momentum for expanding its business, creating new products, and selling what consumers usually didn’t realize they needed.
As for its third quarter expectations, Amazon said its target net sales would range from $54 billion to $57.5 billion, or increase between 23% and 31%.
The affects of this have been pretty huge. Amazon’s share price increased to over $1800 a share which is up over $800 since it passed the $1000 just last October.
This has further solidified Jeff Bezos as by far the richest man on the planet with a net worth of approximately $143 Billion which is a huge $50 Billion than the next richest man Bill Gates.
This jump is largely tied to Amazon share price as Bezos still owns around 16% of Amazon shares.
What are your thoughts on Amazon’s impressive growth? Can you see any other business coming for their eCommerce crown? Let us know in the comments below or in our Facebook Group.