Amazon stock returns
Amazon (AMZN) rose over 8% in April 2019. The stock is currently trading at $1,900.82, which is 45% above its 52-week low of $1,307.0 and 7% below its 52-week high of $2,050.50.
The stock has gained 6.7% in May. Amazon announced its first-quarter results last month, in which it reported sales of $59.7 billion, a rise of 17.0% YoY. Though robust, sales growth has now fallen for the fourth consecutive quarter.
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The company’s net income grew at a much more impressive rate of 122.5% to $3.6 billion driven by Amazon Web Services and its digital advertising verticals.
Slowdown in international sales, Web Services remain robust
Amazon’s falling sales were driven by its slowdown in international markets and marginal growth in its Whole Foods division. After accounting for Amazon’s high growth Web Services business, sales outside North America rose by 9% in the first quarter. Amazon Web Services is the company’s cash cow and has grown sales by 45% in the last four quarters.
Amazon’s subscription revenue rose 40% to $4.4 billion in the first quarter as well. This growth accelerated from 26% in the fourth quarter. Amazon has over 110 million Prime subscribers. Prime members spend a higher amount compared to regular customers.
E-Marketer has estimated Amazon’s advertising platform to be the third largest in the United States, behind Google (GOOGL) and Facebook (FB). The e-commerce giant has been aggressively increasing the number of ads that show up on a page when a customer searches for a certain product. Product searches around the world are now happening more often on Amazon’s platform than on Google’s.