Amazon easily beat earnings and revenue estimates
E-commerce giant Amazon (AMZN) reported its fiscal 4Q17 earnings on Thursday, February 1. The company handily beat both earnings and revenue estimates. Amazon recorded revenue of $60.5 billion, an all-time high, 38% higher on a YoY basis. Wall Street was expecting revenues of $59.8 billion. The company posted a net profit of $1.9 billion in fiscal 4Q17, partly thanks to the $789 million tax cut, which pushed the profits higher. The company usually runs on breakeven, as it reinvests most of its profits into other businesses.
Amazon’s AWS business continues to surge
The company’s cloud business, AWS (Amazon Web Services), generated $5.1 billion in revenue during fiscal 4Q17, 45.7% higher than the revenue of $3.5 billion it generated in the same quarter last year.
Fiscal 4Q17 was Whole Food’s first full quarter after being acquired by Amazon. Revenues on “physical stores,” which includes Whole Foods and Amazon-owned retail outlets, came in at $4.5 billion in the quarter.
The company’s stock surged 6% in after-hours trading on Wednesday. Amazon stock already rose 24% in January and nearly 75% in the last 12 months as the company continues to expand in all directions. It now has a market cap of over $670 billion after recently closing at yet another all-time high of $1,450.8 per share.